In an exclusive interview with SHANA, Mohammad Ali Khatibi added the OPEC+ move will certainly cause oil prices in the global market to surge.

Although the voluntary move will have an impact on oil prices, it will also affect supply and demand and could reduce demand, opined the expert.

Khatibi said oil output should be proportionate to the market’s demand.

The OPEC+ alliance – comprising OPEC and non-OPEC oil producers – shocked the market over the weekend by announcing further voluntary cuts amounting to 1.66m barrels per day from May to December 2023.

Saudi Arabia said it will cut output by 500,000 bpd while Iraq will reduce its production by 211,000 bpd, according to official statements.

The United Arab Emirates said it will cut production by 144,000 bpd, Kuwait announced a cut of 128,000 bpd while Oman’s cut will be 40,000 bpd and Algeria’s 48,000 bpd. Kazakhstan will also cut output by 78,000 bpd.

Russia said it will extend a voluntary cut of 500,000 bpd until the end of 2023.