MOSCOW, April 14. /TASS/. Additional reduction of crude output by a number of OPEC+ countries increases the risks of deficit and price growth on the oil market, the International Energy Agency (IEA) reported on Friday.
"Oil market balances were already set to tilt into a substantial deficit in the second half of this year, but the new cuts risk further tightening balances and pushing up oil prices at a time when inflationary pressures are already hurting vulnerable consumers - especially in emerging and developing economies," the agency said.
On April 2, a number of OPEC+ nations announced a voluntary output reduction from May to the end of 2023. The decisions were confirmed following the meeting of the OPEC+ ministerial monitoring committee held on April 3. The total volume of voluntary reduction will amount to 1.66 mln barrels per day and will become an addition to agreements enforced in November 2022 on reduction in output by 2 mln barrels per day within the framework of the OPEC+ deal.
In particular, Saudi Arabia will voluntarily reduce production by 500,000 barrels a day, Iraq - by 211,000 barrels a day, the United Arab Emirates - by 144,000 barrels a day, Kuwait - by 128,000 barrels a day, Kazakhstan - by 78,000 barrels a day, Algeria - by 48,000 barrels a day, Oman - by 40,000 barrels a day, Gabon - by 8,000 barrels a day. Russia will extend the decision on output reduction by 500,000 barrels per day from the February average by yearend.