Why di world big oil producers dey cut supply?

Several of di world largest oil exporters say dem cut dia production levels, wey don cause increase for crude prices.

Saudi Arabia, Iraq and several Gulf states dey togeda, cut supply by one million barrels of oil a day and Russia, dia fellow Opec+ group member, dey extend im cut of half a million barrels per day until di end of di year.

White House don criticise di move.

Wetin be Opec+?

Opec+ na one group of 23 oil-exporting kontris wey dey meet regularly to decide how much dem go sell crude oil on world market.

Di koko of dis group na 13 members of Opec (di Organisation of Oil Exporting Countries), wey be mainly Middle Eastern and African kontris.

Dem form Opec for 1960 as one cartel, wit di aim of fixing di worldwide supply of oil and im price.

Today, Opec nations dey produce around 30% of di world crude oil.

Saudi Arabia na di biggest single oil producer within Opec, dem dey produce more dan 10 million barrels a day.

For 2016, wen oil prices bin dey particularly low, Opec join forces wit 10 oda oil producers to create Opec+.

Dis new members bin include Russia, wey dey also produce over 10 million barrels a day.

Togeda, dis kontris dey produce about 40% of all di world crude oil.

"Opec+ dey adjust supply and demand to balance di market," Kate Dourian of di Energy Institute tok. "Dem dey keep prices high by reducing supplies wen demand of oil fall."

Di organisation also fit reduce price by putting more oil for market.

Why Opec+ dey cut oil quantity?

Di most recent cut, of 1.16 million barrels a day, follow one cut of two million barrels a day for October 2022.

E immediately lead to 5% rise for oil price for international exchanges.

"E bin come as complete surprise," Dourian tok, "becos Saudi Arabia bin tok recently say im production quotas go remain like dat for di rest of di year.

"E fit be move by Opec+ in advance, becos e feel say world demand for oil no go plenty as dem bin first predict."

For 2020, di group cut production by more dan nine million barrels per day in response to di pandemic. As kontris enta lockdown, di price of crude oil crash becos of lack of buyers.

Following Russia invasion of Ukraine, prices increase to over $130 a barrel but by March dis year, dem fall to di lowest in 15-month, na small e take pass $70 a barrel.

Rising oil prices go probably push up petrol prices again for UK and around di world, adding to cost-of-living pressures.

Di US don call di latest move by Opec+ "inadvisable".

Wetin dey happun wit Russia oil?

Afta Russia invade Ukraine, EU kontris stop to import all Russian oil wey dem dey transport by sea while US and UK stop to buy am at all at all.

Russia dey now export more crude oil go India and China, wey no join for di West sanctions against Moscow.

Di G7 group of kontris dey try keep Russia oil revenues low by imposing price limit of $60 a barrel on oil wey Russia go export through im shipping and insurance companies.