With new cuts in its oil production, Saudi Arabia wants to persuade most of the states in OPEC + to refrain from increasing production. Saudi Energy Minister Prince Abdulaziz bin Salman announced on Tuesday at the OPEC + negotiations that his country would cut oil production by an additional one million barrels a day in February and March.
According to the Kazakh energy minister, Russia and Kazakhstan will be allowed to increase production by 75,000 barrels per day in February and March. On the oil market, prices rose by five percent after Saudi Arabia's decision became known.
With the recent cuts, the oil market and the economy of the country are to be supported, said Salman. Already on Monday he warned caution with reference to the fragile demand and pointed out the new risks from new, highly contagious mutations of the corona virus. Russia and Kazakhstan originally called for an increase in production by 500,000 barrels per day for February.
The OPEC + countries have been dampening production volumes since the beginning of 2017 in order to support oil prices and reduce oversupply. The organization consists of the Organization of Petroleum Exporting Countries (OPEC) and its ten cooperation partners, including Russia.
