OPEC surprised everyone by announcing a 1 million barrels-per-day reduction in oil production from May to 2023. The announcement comes minutes after Saudi Arabia announced the largest drop among nations that are part of the large group of the world's largest oil producers, a cut of half a million barrels. Specifically, the UAE will reduce production by 144,000 barrels, while Kuwait by 128,000 barrels. Iraq will cede 211,000 barrels per day, Kazakhstan will contribute 78,000 barrels, Algeria 48,000 barrels per day and Oman 40,000 barrels. Russia, for its part, will extend the production reduction, which it had previously planned and notified, by 500,000 barrels per day, from March to June throughout 2023.
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