The globe’s major oil companies, commonly known as “Big Oil Majors,” made a somewhat surprising move to cut production by over one million barrels per day as a “precautionary” move to stabilise the oil market.
Russia, a leading member of the OPEC+ cartel, also decided to extend their existing cut of 500,000 barrels per day until the end of the year. This move by the Big Oil Majors was described as “a responsible and preventive action” by Russia. However, the cuts made by these countries risk increasing inflation and putting pressure on interest rates, reported Thai PBS.
The reductions by Saudi Arabia, Iraq, the UAE, Kuwait, Algeria, and Oman from May until the end of the year will be the largest reduction since the OPEC+ cartel cut two million barrels per day in October. Consequently, oil prices rose by almost 6% in Asian trading this…
