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OPEC Oil Production Cut: Saudi Arabia and OPEC made a big decision on oil production, now there will be an outcry around the world!



Saudi Arabia and other organizations in oil-exporting and oil-producing countries have announced further production cuts of about 1.16 million barrels per day. At the same time, due to this decision, the concern of countries around the world has increased regarding oil prices. Saudi Arabia has said it will cut production by 500,000 barrels per day, or BDP, from May to the end of 2023. According to the Washington Post report, the move comes as a surprise to most countries. Because OPEC Plus said there was no intention to change its policy, but this announcement surprised everyone.

Effect of the drop on oil prices
In a statement carried by the Saudi Press Agency, the Saudi official stressed that this was a precautionary measure aimed at supporting the stability of the oil market, according to the Emirates press agency. Also said that this voluntary reduction is a precautionary measure for the reduction of production during the 33rd OPEC and non-OPEC ministerial meeting on October 5, 2022. At the same time, the effect of this decision by OPEC More and Saudi Arabia has also started to make itself felt. Oil prices rose 6%.

Also Read: India buys rich oil from Russia, imports exceeded total supply from Iraq and Saudi Arabia

Saudi Arabia called the cut a precautionary measure.
Explain that this step by Saudi Arabia may increase oil prices, due to which there may be more tension in relations between Riyadh and America. It should be noted that the whole world is facing inflation due to the war between Ukraine and Russia. The energy minister said on Sunday the cut would be done in coordination with some OPEC and non-OPEC members. However, he did not name anyone. This reduction will be added to the one announced last October.

America is angry
Saudi Arabia described the move as a “precautionary measure” aimed at stabilizing the oil market. Saudi Arabia and other OPEC members angered the US government last year by cutting oil production. At that time, midterm elections were about to take place in America, and inflation was the main election issue.

Know which country will reduce by how many bpd
The United Arab Emirates said it would cut output by 144,000 bpd. At the same time, Kuwait announced a drop of 128,000 bpd. Along the same lines, Iraq announced that it would reduce 211,000 bpd. While Oman will cut production by 40,000 bpd and Algeria by 48,000 bpd.

Tags: saudi arabia