The kingdom of Saudi Arabia and other oil-producing countries have announced plans to cut production by 1.15 million barrels per day (bpd) from May till the end of the year.
The decision, which may significantly affect oil prices globally, is coming ahead of the monthly meeting of the Organisation of Petroleum Exporting Countries (OPEC).
Oil price recently fell to $72 a barrel for the first time since December 2021.
In a statement by Saudi Arabia’s energy ministry, the country’s cut of 500,000bpd would be in combination with some OPEC+ and non-OPEC members.
The ministry described the move as a precautionary measure, saying it is aimed at stabilising the oil market.