Reducing Oil Production: A New Pillar to Support Global Economic Conditions

Saudi Arabia and Arab countries decide to voluntarily reduce oil production to enhance the conditions of oil markets and the global economy. (AP)
Saudi Arabia and Arab countries decide to voluntarily reduce oil production to enhance the conditions of oil markets and the global economy. (AP)
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Reducing Oil Production: A New Pillar to Support Global Economic Conditions

Saudi Arabia and Arab countries decide to voluntarily reduce oil production to enhance the conditions of oil markets and the global economy. (AP)
Saudi Arabia and Arab countries decide to voluntarily reduce oil production to enhance the conditions of oil markets and the global economy. (AP)

In support of the stability of the global oil markets, and the enhancement of the balance between supply and demand, the member of the Organization of Petroleum Exporting Countries (OPEC) and the producing countries within the OPEC+ have decided to implement a voluntary reduction of crude oil production.

Experts described the move, which was adopted by Saudi Arabia and international producers, as a new pillar that takes into account the conditions of the global economy, amid the crises hitting the financial and banking sector.

Dr. Mohammad Al-Sabban, former senior adviser to the Saudi Minister of Energy, told Asharq Al-Awsat that the decision of some members of OPEC+ was not new, as Saudi Arabia had voluntarily reduced its production by one million barrels per day over the past year. The latest move is a proactive and precautionary step by the producing countries that would take in the effects of the reduction until the end of the year.

Al-Sabban stressed the importance of the decision, pointing to the West’s expectations that oil prices will continue to decline, unlike now, with prices reaching $80 per barrel of crude oil.

The OPEC+ alliance is historically successful, and achieves economic stability in the oil markets, he said, adding that the group was also concerned with creating a balance between supply and demand.

Mohammed Al-Qabbani, an energy expert, told Asharq Al-Awsat that the stability of the markets, the continued flow of oil supplies and their balance with demand were the bases of OPEC decisions.

He underlined that Saudi Arabia has always sought to achieve the optimal balance between supply and demand, which in turn contributes to market stability.

He stated that the organization’s decisions differed from one period to another, taking into account all the circumstances surrounding the industry.

“Thanks to these pure and strict technical and administrative decisions, devoid of bias or external agendas, and focused only on market fundamentals, we find that the organization in the past few years has succeeded remarkably in managing markets and protecting them from several crises, benefiting in particular consumers and producers, and the global economy global in general,” Qabbani stated.



Turkish Central Bank to Use All Instruments to Maintain Stability, Governor Tells Bank Executives

A police officer looks on from a vehicle, as people gather for a protest in support of Istanbul Mayor Ekrem Imamoglu, on the day Imamoglu was jailed as part of a corruption investigation, near the Istanbul Metropolitan Municipality building, in Istanbul, Türkiye, March 23, 2025. REUTERS/Murad Sezer
A police officer looks on from a vehicle, as people gather for a protest in support of Istanbul Mayor Ekrem Imamoglu, on the day Imamoglu was jailed as part of a corruption investigation, near the Istanbul Metropolitan Municipality building, in Istanbul, Türkiye, March 23, 2025. REUTERS/Murad Sezer
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Turkish Central Bank to Use All Instruments to Maintain Stability, Governor Tells Bank Executives

A police officer looks on from a vehicle, as people gather for a protest in support of Istanbul Mayor Ekrem Imamoglu, on the day Imamoglu was jailed as part of a corruption investigation, near the Istanbul Metropolitan Municipality building, in Istanbul, Türkiye, March 23, 2025. REUTERS/Murad Sezer
A police officer looks on from a vehicle, as people gather for a protest in support of Istanbul Mayor Ekrem Imamoglu, on the day Imamoglu was jailed as part of a corruption investigation, near the Istanbul Metropolitan Municipality building, in Istanbul, Türkiye, March 23, 2025. REUTERS/Murad Sezer

Türkiye's Central Bank will use all instruments within market rules effectively and decisively to maintain stability, Governor Fatih Karahan told bankers on Sunday, the Turkish Banks Association (TBB) said.
In a statement, TBB said that Karahan and TBB board members discussed recent market developments in a meeting on Sunday, after an Istanbul court formally arrested Istanbul Mayor Ekrem Imamoglu.
Turkish lira, stocks and bonds suffered heavy declines since Wednesday when Imamoglu, the main political rival to President Recep Tayyip Erdogan, was taken into custody.

Finance Minister Mehmet Simsek has told bankers that temporary market fluctuations were being monitored closely and necessary measures were being taken, according to a readout of a meeting from TBB.
The Central Bank this week raised its overnight rate unexpectedly and spent about $10 billion in foreign reserves on Wednesday to stabilize the currency, which plunged by 12% to an all-time low that day. Inflation was 39% last month.