OPEC+ makes surprise call to curb oil production

OPEC+ has called for further cuts to crude oil production causing a rise in oil futures, the international oil and gas organisation announced on Sunday.

The members of OPEC+ have agreed to cut oil outputs by 1.16 million bpd to stabilise the market, bringing overall cuts to around 3.66 million bpd or around 3.7% of global demand.

According to Reuters, the call came before a virtual meeting between OPEC+ members, including Saudi Arabia and Russia, which was expected to maintain to the 2 million bpd cuts put in place in November 2022 until the end of 2023.

The cuts will begin in May 2023 and last until the end of the year.

Under the agreement, Saudi Arabia will cut its output by 500,000 bpd, Russia by a similar 500,000 bpd, Iraq by 211,000 bpd, the UAE by 144,000 bpd, Oman by 40,000 bpd, Kazakhstan by 78,000 bpd and Gabon by 8,000 bpd.

The move saw Brent oil futures rise by more than 5% as international markets opened on Monday.