OPEC+ announces production cuts

The main aim behind this cut is to support the prices and demand by reducing the supply of oil. The most recent cuts would amount to approximately 1.16 million barrels per day. This lead to the price jumping as much as 6% on the announcement. This comes in addition to the 2 million barrels per day cut which is in place till the end of 2023.

This move would not supported by the central banks who are trying to tackle inflation and the prices increases will be having an adverse impact on their policies.

The size of the cuts:

1. Saudi Arabia - 500,000 bpd

2. UAE - 144,000 bpd

3. Kuwait - 128,000 bpd

4. Iraq - 211,000 bpd

5. Algeria - 48,000 bpd

6. Oman - 40,000 bpd

7. Kazakhstan - 78,000 bpd