• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 42 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 hours World’s Biggest Battery In California Overheats, Shuts Down
  • 4 mins Evergrande is going Belly Up.
  • 3 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 5 hours U.S. Presidential Elections Status - Electoral Votes
  • 23 hours And now, hybrid electric locomotives...
  • 20 hours The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 6 hours Ozone layer destruction driving global warming
  • 1 day The Painful Death of Coal
  • 4 hours The coming Cyber Attack
  • 4 hours Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 7 hours 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
  • 2 days China Sees Opportunity As Venezuela’s Oil Industry Hits Rock Bottom
America's Infrastructure Crisis Is Growing Increasingly Dire

America's Infrastructure Crisis Is Growing Increasingly Dire

Despite promises of improved infrastructure…

UAE Making Even Bigger Cuts To Oil Production Next Month

The United Arab Emirates will cut even more oil production in June, UAE Minister of Energy and Industry Suhail bin Mohammed Faraj Faris Al Mazrouei announced this week.

The production cuts, according to Al Mazrouei, will increase by another 100,000 bpd next month, after already reducing its oi production “in line with the OPEC+ agreement” in May. This comes after the OPEC member increased its production to more than 4 million bpd in April, when Saudi Arabia was also busy adding crude oil into the global supply glut at a time when the world was shutting down in response to the coronavirus, crippling the demand for crude.

Today’s news comes as Saudi Arabia, too, said it would cut beyond its promised cuts next month. Saudi Arabia has pledged as part of the OPEC agreement to cut its production to 8.5 million bpd, but said this week that it would cut to 7.492 million bpd in June, after the Saudi energy ministry ordered Aramco to cut bigger.

Oil prices had rallied earlier on Monday on this news that even more oil production would be taken out of the mix next month. But by 2:30pm ET, WTI had slipped 3.31% on the day, with the Brent benchmark slipping nearly 5% back below $30 per barrel.

Kuwait also announced that it would cut its oil production even more than the OPEC+ agreement called for, by an additional 80,000 bpd in June.

But the move to cut additional barrels by Kuwait, Saudi Arabia, and the UAE was seen not as a positive move, but as an out-of-options move as Middle East producers find themselves without buyers. Today’s announcement of additional cuts could, therefore, spark fear instead of confidence as the market views it as a reflection of the true state of the market.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • daniel cashmer on May 11 2020 said:
    cuts are cuts... Less oil produced is less in the system and less that needs to sit in tankers at sea.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News