The oil production cuts announced by the world's largest oil exporters, Saudi Arabia and Russia, have led to an increase in oil prices, despite widespread concerns about a slowdown in the global economy and a possible increase in interest rates by the US Federal Reserve. This is reported by Reuters.

Saudi Arabia announced the continuation of a voluntary reduction in oil production by one million barrels per day until the end of August, and did not rule out the possibility of continuing the decline in the spring. Shortly afterwards, Russian Deputy Prime Minister Alexander Novak made a statement announcing a 500,000 barrels per day reduction in oil exports in August.

According to media reports, these cuts amount to 1.5% of total global supply and bring the total production cut by OPEC+ countries to 5.16 million barrels per day. OPEC+ currently produces about 40% of the world's oil.

Currently, OPEC+ is already cutting production by 3.66 million barrels per day, which is 3.6% of global demand. This includes 2 million bpd approved last year and additional voluntary cuts of 1.66 million bpd agreed in April and extended until December 2024.

OPEC+ has been reducing oil production since November last year due to lower demand in China and increased supply in the United States, with the aim of increasing oil prices. However, it has not yet managed to achieve significant changes from the price range of $70-80 per barrel.

After the announcement of production cuts, Brent crude oil prices rose by 89 cents to $76.30 per barrel.

Saudi Arabia, the de facto leader of OPEC, promised to deeply cut production in July as part of a broader OPEC+ deal to limit supplies until 2024.

In light of these developments, OPEC Secretary General Khaytam Al Ghais called for the expansion of refining capacity around the world to meet the growing demand for petroleum products.