Kazakhstan to cut its oil output

According to the Ministry of Energy, Kazakhstan is going to voluntarily cut its oil output by 78,000 barrels per day starting from May until the end of 2023.

«Kazakhstan will implement a voluntary cut of 78,000 barrels per day from May till the end of 2023 in coordination with other OPEC and non-OPEC Participating Countries in the Declaration of Cooperation,» the agency said in a statement.

The energy ministry also said that this voluntary cut is a precautionary measure in addition to the reduction in production agreed upon at the 33rd OPEC and non-OPEC Ministerial Meeting on October 5, 2022.

Last fall, the OPEC+ member states agreed to cut oil output by two million barrels per day starting from November 2022 until the end of 2023 despite an appeal by the U.S. and other big consumers of hydrocarbon fuel to the expansion of oil production. However, thanks to the organization’s decision Brent crude oil price soared to almost $100 per barrel, although oil prices have slightly decreased after the U.S. Federal Reserve raised the base rate. As of today, Brent crude oil is traded at $84.08 per barrel.

According to the OPEC forecast, in 2023, Kazakhstan can increase its oil output by 160,000 barrels of oil and gas condensate per day at the expense of the Kashagan, Tengiz and Karachaganak oil fields. In December 2022, Kazakhstan reported an output of 1.6 million barrels a day, thanks to production expansion at Kashagan and Karachaganak.