Oil prices recorded a significant rise on Monday after the decision of major producers to reduce daily production by a total of more than one million barrels per day, starting from next May until the end of this year. Accordingly, Saudi Arabia, which coordinated the step, will cut 500 thousand barrels per day, Iraq 211 thousand barrels, the UAE 144 thousand barrels, Kuwait 128 thousand barrels, Algeria 48 thousand barrels, and Oman 48 thousand barrels, according to each country’s announcement.

The decision came on the eve of the meeting of the OPEC Ministerial Monitoring Committee and its partners (OPEC+ alliance) on Monday via video communication technology.

Saudi Arabia, the UAE, Kuwait, Oman, and Algeria also decided in a coordinated manner to reduce their daily production by a total of more than one million barrels per day, starting from next May until the end of this year, in the largest production cut since OPEC and its partners (OPEC+ alliance) decided in October 2022 to cut two million barrels per day.

Similarly, Russia, part of the OPEC+ alliance, announced that it would extend its crude oil production cut by 500 thousand barrels per day until the end of 2023.

Oil prices also jumped nearly 6% on Monday in Asian trading following the unexpected announcement of significant production cuts by these countries.

The unexpected announcement of the oil production cut came despite repeated calls by the United States to increase production, especially with increased consumption and the full reopening of economic activities in China, the world's largest oil consumer, after COVID-related lockdowns.

It is noted that the OPEC+ cartel consists of 13 member countries in the Organization of the Petroleum Exporting Countries (OPEC) and 11 countries outside it.