OPEC countries have entered into an agreement, called OPEC+, whereby they all decided to drastically reduce their oil production between May and the end of 2023.
The Sultanate of Oman has decided to voluntarily reduce crude oil production by 40,000 barrels per day from May until the end of 2023, in agreement with the countries participating in the "OPEC Plus" agreement.
In the same context, the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) have announced a voluntary reduction in their crude oil production. The Saudi Energy Ministry said the Kingdom will implement a voluntary reduction of its crude oil production by 500,000 barrels per day from May next year until the end of 2023 and the UEA with 144.000 barrels per day..
An official source at the Saudi Energy Ministry said this voluntary production cut is in addition to the production cut agreed at the 33rd ministerial meeting of (OPEC) member and non-OPEC producing countries (OPEC+), which took place on 5 October 2022.
Kuwait's energy ministry said Sunday that it will voluntarily reduce oil production by 128,000 barrels per day from May to the end of 2023, state media reported.
Russia is not part of OPEC but has co-signed the OPEC+ agreement. Between March and June 2023, Russia will also cut its oil production by 500,000 barrels a day.
Iraq cuts its oil production by 211,000 barrels a day between May and the end of 2023
Algeria ditto by 48,000 barrels a day.
OPEC consists of 13 oil-producing countries ( + Russia ).
In terms of oil imports, this means that Europe will become even more dependent on the USA and Canada than before. Imports from China and Brazil are out of the question now that both nations signed a deal last week to turn their backs on the USA. Iran and Iraq is also not ( anymore ) in the cards given the very tense situation between the USA and Iran and the former's embargoes against both nations followed by the EU.
Are we now be getting a real oil crisis in the EU ?