OPEC+ announces voluntary Oil Output Cuts

Oil prices climb as OPEC+ members led by Saudi Arabia announced today a series of “voluntary” oil production cuts. Brent crude prices are up 1.60% at 79.73 and USDINR is expected to gap up at open closer to 82.32 levels. The Canadian dollar, beneficiary of higher oil prices gapped down at open at 1.3489 but has since found buyers in the Asian session to trade at 1.3507.

The cuts will go into effect in May and remain in place until the end of 2023. 

The following output cuts have been announced:

• 1.      Saudi Arabia 500,000 bpd
• 2.      The UAE 144,000 bpd
• 3.      Iraq 211,000 bpd
• 4.      Kuwait 128,000 bpd
• 5.      Algeria 48,000 bpd
• 6.      Oman 40,000 bpd
• 7.      Kazakhstan 78,000 bpd
• 8.      Gabon 8,000 bpd
• 9.      Moscow will extend its previously announced 500,000 bpd oil production cut until the end of 2023

The cuts could reach 1.5mn bpd.