Saudi Arabia and other OPEC-plus oil producers have announced further oil output cuts of around $1.16 million (Ksh 154 million) barrels per day.
The US has called the surprise move inadvisable and the pledges bring the total volume of cuts by OPEC-Plus, which includes Russia to over $3.6 million (Ksh 477 million) barrels per day equal to 3.7 percent of global demand.
Sunday’s development comes a day before the OPEC-plus ministerial panel. Currently, the group has been cutting output by 2 million barrels per day, an amount that was expected to continue until the end of 2023.
The US has argued that the world needs lower prices to support economic growth and prevent Vladimir Putin from earning more revenue to fund Russia’s invasion of Ukraine.
After those unilateral reductions, US officials had said the Kremlin’s alliance with other OPEC members was weakening, but Sunday’s move suggests cooperation is still strong.
The Saudi energy ministry said in a statement that the kingdom’s voluntary cut was a precautionary measure aimed at supporting the stability of the oil market.