OPEC+ to slash production by more than one million barrels per day

UAE, Saudi Arabia, and other OPEC+ oil producers have announced a voluntary reduction of oil production by 1.15 million barrels per day until the end of 2023, leading to an increase in oil prices on Asian markets. This is the largest oil production cut since OPEC+ reduced production by 2 million barrels per day in October 2022.

Representatives of the energy ministries of Saudi Arabia and the UAE stated that the voluntary cut in oil production was made to support market stability. Despite pressure from the United States to increase oil production, OPEC+ has decided to reduce production.

This decision will raise new concerns about inflation and increase pressure on central banks to further raise interest rates. The rise in oil prices may also affect the prices of other goods and services, which could impact consumer spending.

However, OPEC+ representatives are confident that this decision will help ensure stability in the global oil market and reduce excess oil, which will in turn help support long-term oil prices.

Keywords: oil production, global oil market, energy industry, supply and demand, crude oil prices, market stability, Saudi Arabia, UAE, OPEC, US shale, inflation, central banks, long-term prices