Oil giants in the Gulf are in charge of a coordinated cut in production, which they call a "precautionary measure" meant to keep the market stable.

Saudi Arabia and other oil producers in OPEC+ have agreed to cut their production by about 1.15 million barrels per day (bpd) as a "precautionary measure" to keep the market stable.

When its ministerial panel, which includes Saudi Arabia and Russia, meets virtually on Monday, most people thought the group of 23 countries would stick to the already agreed-upon cuts of 2 million bpd.

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In October, OPEC+, which is made up of the Organization of the Petroleum Exporting Countries (OPEC) and 10 allies led by Russia, agreed to cut oil production by 2 million barrels per day (bpd) starting in November. This upset Washington because less oil on the market makes oil prices go up.

The US has said that the world needs lower prices to help the economy grow and stop Russian President Vladimir Putin from making more money to pay for the war in Ukraine.

The new cuts, which were announced on Sunday and start in May, are on top of the ones already agreed to in October.

Official statements say that Iraq will cut its output by 211,000 bpd and that Riyadh will cut its output by 500,000 bpd.

The United Arab Emirates said it would cut production by 144,000 barrels per day. Kuwait said it would cut production by 128,000 barrels per day. Oman and Algeria will each cut production by 40,000 barrels per day. Kazakhstan will cut production by 78,000 bpd as well.

The deputy prime minister of Russia said that Russia would keep voluntarily cutting oil production by 500,000 bpd until the end of 2023.

Moscow made these cuts on its own in February, after the West put price caps in place.

US officials said that Russia's alliance with other OPEC+ members was weakening after it cut production on its own, but Russia's move on Sunday shows that the alliance is still strong.

The official Saudi Press Agency said that a Saudi energy ministry official said that this was a precaution meant to help keep the oil market stable.

In response to the banking crisis caused by the failure of two US banks, oil prices dropped to their lowest level in 15 months last month. Credit Suisse was saved by Switzerland's largest bank, UBS.

Amrita Sen, founder and director of Energy Aspects, said on Sunday that OPEC is taking steps to prepare for a possible drop in demand.

SOURCE: NEWS AGENCIES