Saudi Arabia Extends Oil Production Cut by 1 Million b/d Until the End of the Year
Prior to this, the voluntary reduction was calculated first for July, and then extended to August and September
Saudi Arabia has decided to extend the voluntary cut in oil production by 1 million barrels per day (b / d) until the end of 2023. This was reported by the Saudi Press Agency, citing an official source in the Ministry of Energy of the Kingdom.
Prior to this, the voluntary reduction was calculated first for July, and then extended to August and September. At the same time, as noted in the message, the decision to reduce production will be reviewed every month in order to consider both a further decrease in production and its increase.
In October, November and December, as in previous months, the volume of oil production by Saudi Arabia, taking into account the reduction, will be 9 million bpd. The report notes that the voluntary reduction of 1 million b/d is in addition to the earlier decision to reduce production by 500,000 b/d. Thus, the total volume of production cuts by the kingdom in September will be 1.5 million b/d.
Following an OPEC+ meeting in Vienna on June 4, Saudi Arabia announced a voluntary cut in oil production by 1 million b/d for July, with the possibility of extending the measure. As the Saudi Press Agency reported, citing a source in the Ministry of Energy of the Kingdom, the additional reduction is a warning measure aimed at maintaining the stability and balance of the oil market.
In addition, in May, several OPEC+ countries began to voluntarily reduce oil production in the total volume of 1.66 million b/d, while Saudi Arabia accounted for a decrease of 500 thousand b/d. Initially, this measure was to be valid until the end of 2023. However, at the OPEC+ meeting, all countries that supported the reduction extended it until the end of 2024.
