A number of OPEC+ members, including the groups two biggest oil producers, Saudi Arabia and Russia, have begun to reduce their crude output. The cuts are part of a previously announced voluntary reduction in production designed to support global oil prices which will last from May through the end of the year.

Saudi Arabia has initiated a reduction of 500,000 barrels per day (bpd) while Iraq has initiated a cut of 211,000 bpd. The UAE has cut production by 144,000, Kuwait has reduced output by 128,000, and Kazakhstan slashed production by 78,000 bpd.

Algeria cut production by 48,000 bpd, while Oman cut output by 40,000 bpd. Gabon has cut 8,000 bpd.

Russian Deputy Prime Minister Alexander Novak said earlier this year that Russia would join the voluntary reduction in production by cutting output by 500,000 bpd from the average level in February for the remainder of the year. A subsequent Bloomberg analysis found the production cuts by Russia were closer to 700,000 barrels per day from February’s levels.

In total, it is estimated that the cuts will add up to 1.6 million bpd.

The production cuts were launched in response to the fact oil had declined over 20% in the twelve months through April 5th. The action is expected to support prices and mitigate the effects of the economic slowdown and the fallout from the banking crisis in the United States.

The latest production cuts were taken on top of an agreement by the cartel’s members to reduce oil output by a total of two million barrels per day, which went into effect in November of 2022.