Major oil-producing countries announce voluntary 2.1M BPD(ish) reductions

<p>The back of the envelope "voluntary cuts" in production/exports shows:</p><ul><li>Saudi Arabia: 1 million BPD</li><li>Russia: 500,000 BPD</li><li>Iraq: 211,000 BPD</li><li>UAE (United Arab Emirates): 160,000 BPD</li><li>Kuwait: 135,000 BPD</li><li>Kazakhstan: 82,000 BPD</li><li>Algeria: 51,000 BPD</li><li>Oman: 42,000 BPD </li></ul><p>That totals around 2.18M. Note this is voluntary. </p><p>Meanwhile, Russian Deputy Prime Minister Novak has stated that the OPEC+ coalition's additional oil output cuts will exceed 2 million barrels per day, a move intended to address the anticipated lower demand during the winter season. He noted that current oil stockpiles in OECD countries are averaging below 100k BPD over the past five years. Novak affirmed that Russia is fully complying with its obligations. He also pointed out that a slowdown in global economic growth poses a risk. Despite these challenges, Novak described the oil market as quite stable and anticipates a growth in demand.</p><p>The price of crude oil is moving to the downside now with the price at $76.60. That's down around $0.80 or -1.18%. There is some skepticism regarding the "cuts" (or so it seems – "Not so fast OPEC…" ). </p><p>That move has now taken the price back below its 200 day moving average at $78.06. The high price today reach $79.60. The low price is extended to $75.10.</p>

This article was written by Greg Michalowski at www.forexlive.com.