Business & Economy

Further curtailment of oil production cuts after resolution of Saudi-UAE dispute

The countries of the “OPEC” alliance have reached a new agreement on further reducing oil production cuts, after settling the rare dispute between Saudi Arabia and the UAE.
The agreement concluded during the meeting held by “OPEC” provides for the extension of special decisions on limiting oil production until late 2022.
According to a statement issued by OPEC, the concluded agreement provides for an increase in
The level of joint production is 400,000 barrels per day each month, starting from next August, until the end of production cuts of 5.8 million barrels per day.
The alliance agreed to amend the basic level of oil production for some of its member states since May 2022, including increasing the UAE’s share from 3.168 to 3.5 million barrels per day (and this is the request that led to the outbreak of the dispute between Abu Dhabi and Riyadh).
These amendments include increasing the shares of Russia and Saudi Arabia to 11.5 million barrels per day, compared to 11 million currently, in addition to increasing the production of Iraq and Kuwait by 150 thousand barrels per day.
The OPEC countries also agreed to hold monthly meetings at the ministerial level and seek to end production cuts by the end of September 2022 if market conditions allow.
According to the assessments, adjusting the base level of OPEC oil production adds 1.63 million barrels per day to supplies as of May 2022.

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