Saudi energy minister says OPEC+ effective oil cuts are 12.5 million bpd

Saudi energy minister says OPEC+ effective oil cuts are 12.5 million bpd
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FILE PHOTO: Saudi Arabia’s Minister of Energy Prince Abdulaziz bin Salman Al-Saud speaks via video link during a virtual emergency meeting of OPEC and non-OPEC countries, following the outbreak of the coronavirus disease (COVID-19), in Riyadh, Saudi Arabia April 9, 2020. Saudi Press Agency/Handout via REUTERS

DUBAI (Reuters) – The Saudi energy minister said on Sunday that effective oil supply cuts by OPEC and its allies, a group known as OPEC+, will amount to 12.5 million barrels per day, because of higher output in April from Saudi Arabia, the United Arab Emirates and Kuwait.

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Prince Abdulaziz bin Salman was speaking to Reuters by telephone on Sunday after OPEC and allies led by Russia agreed to cut oil output by a record amount – representing around 10% of global supply – to support oil prices amid the coronavirus pandemic, and sources said effective global cuts including countries from outside the alliance could amount to as much as 20%.

“I am honored to be a party of this historic moment and historic agreement,” Prince Abdulaziz said.

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The kingdom pumped 12.3 million bpd in April, which is higher than its agreed reference level of 11 million bpd under the new pact, meaning the effective cut by Saudi Arabia is about 3.8 million bpd. Actual oil production reductions from both Kuwait and the UAE will be also more than what was agreed under the agreement.

Reporting by Rania El Gamal; Editing by Daniel Wallis

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