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April 4: Organization of the Petroleum Exporting Countries (OPEC) + oil producers on Sunday announced cuts of oil production by around 1.16 million barrels per day to stop oil prices from falling in the market.
Following the announcement of production cuts, oil prices have surged. The price of Brent crude oil is trading above $84 a barrel after jumping by more than 5%.
Sunday's development comes a day before a virtual meeting of an OPEC+ ministerial panel, which includes Saudi Arabia and Russia, and which had been expected to stick to 2 million bpd of cuts already in place until the end of 2023.
Oil prices soared when Russia invaded Ukraine, but are now back at levels seen before the conflict began.
Responding to the latest cuts, a spokesperson for the US National Security Council said: "We don't think cuts are advisable at this moment given market uncertainty - and we've made that clear."
The reduction in output is being made by members of the Opec+ oil producers. The group accounts for about 40% of all the world's crude oil output.
Saudi Arabia is reducing output by 500,000 barrels per day and Iraq by 211,000. The UAE, Kuwait, Algeria and Oman are also making cuts.The Saudi energy ministry said the kingdom's voluntary reduction was a precautionary measure aimed at supporting the stability of the oil market.
Last October, OPEC+ had agreed to an output cut of 2 million bpd from November until the end of the 2023, a move that angered Washington as tighter supply boosts oil prices. (Agencies)
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