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Oil prices rise about 6% after production cuts

Oil prices rose today after several exporting countries announced a cut in production in May, presented as a “precautionary measure” to stabilize the market.

At the opening of Asian markets, the price of a barrel of North American WTI rose 5.74% to $80.01 (74.05 euros) and a barrel of North Sea Brent rose 5.67% to 84.42 dollars (78.14 euros).

The cut announced on Sunday by Iraq, Algeria, Saudi Arabia, the United Arab Emirates (UAE), Oman and Kuwait will start in May and last until the end of the year.

In total, it will mean a cut in production of around one million barrels per day (bpd), the biggest reduction since October.

Riyadh will reduce production by 500,000 bpd, Iraq by 211,000 bpd, the UAE by 144,000 bpd, Kuwait by 128,000 bpd, Algeria by 48,000 bpd and Oman by 40,000 bpd, the respective news agencies said. officers.

The cuts will all take place from May until the end of 2023, “in coordination with some OPEC [Organization of Petroleum Exporting Countries] and non-OPEC countries”, according to the Algerian Ministry of Energy.

Demand for oil is threatened by the “prospect of high inflation and recessive pressures”, said an analyst at the Middle East Economic Survey Yesar al-Maleki, also blaming the turmoil on the failure of US bank SVB and the rescue of Credit Suisse.

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