Saudi Arabia Will Continue to Voluntarily Reduce Production by 1 Million Bpd Until the End of the Year
Prior to this, the voluntary reduction was initially calculated for July, and then extended to August and September
Saudi Arabia has decided to continue implementing measures to voluntarily reduce 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 Kingdom’s Ministry of Energy.
Prior to this, the voluntary reduction was initially calculated for July, and then extended to August and September. Saudi Arabia then said it was extending its production cuts until the end of the year but would review the decision every month.
Next month, the kingdom also plans to review the voluntary reduction measure and consider increasing or decreasing production.
Saudi Arabia’s oil production by the end of the year, taking into account the reduction, will be 9 million bpd. The report notes that the voluntary reduction of 1 million bpd is in addition to the previously made decision to reduce production by 500 thousand bpd. Thus, the total reduction in production by the kingdom will be 1.5 million bpd.
After the OPEC+ meeting, which took place on June 4 in Vienna, Saudi Arabia announced a voluntary reduction in oil production by 1 million bpd for July, with the possibility of extending the measure. As the Saudi Press Agency reported then, citing a source in the Kingdom’s Ministry of Energy, the additional reduction is a preventive measure aimed at maintaining stability and balance in the oil market.
In addition, in May, several OPEC+ countries began to voluntarily reduce oil production in a total volume of 1.66 million bpd, Saudi Arabia accounted for a reduction of 500 thousand bpd. Initially, this measure was supposed to be in effect until the end of 2023. However, at the OPEC+ meeting, all countries that supported the reduction extended it until the end of 2024.
