The United Arab Emirates (UAE) and Saudi Arabia have announced that they will voluntarily reduce their oil production by a combined 644,000 barrels per day (bpd) from May by the end of 2023.
Saudi Arabia will cut its output by 500,000 bpd, while the UAE plans to reduce its output by 144,000 bpd. The move was made in coordination with other OPEC and non-OPEC countries, including Iraq, Kuwait, and Oman, who have also pledged to reduce their oil output.
The production cuts are aimed at stabilizing global oil prices, which have been impacted by the COVID-19 pandemic and the resulting economic slowdown. The decision to cut production is expected to help balance the oil market and prevent an oversupply of oil.
