Saudi Arabia decides to extend the cut in oil production until September

Saudi Arabia will extend a voluntary cut in oil production by 1 million b/d through September. About this with reference to an official source in the Ministry of Energy writes Saudi Press Agency (SPA)

It is specified that Saudi Arabia may further extend or increase the volume of production cuts. According to the interlocutor of the agency, “the additional voluntary reduction is due to the precautionary measures taken by the OPEC + countries in order to maintain stability and balance in the oil markets.” As a result, in September the daily production in the country will be about 9 million barrels per day.

On June 4, at the meeting of the OPEC+ countries in Vienna, the alliance members agreed to reduce the total production quota by 1.6 million b/d to 40.46 million barrels from January 1, 2024. The OPEC + agreement itself was extended for a year – until December 31, 2024. Previously reportedthat Saudi Arabia decided to reduce daily oil production by an additional 1 million barrels. in July and August. Decisions to voluntarily reduce oil production – outside of the agreements under the OPEC + agreement – were made by only nine countries, including Russia.

Deputy Prime Minister Alexander Novak reported that Russia would voluntarily reduce the volume of oil exports in August by 500,000 b/d. He noted that the decision to reduce shipments abroad was made to support “efforts to ensure market balance.” The Deputy Prime Minister also specified that the Russian Federation would reduce oil production by 500,000 b/d in addition to its earlier commitments under the voluntary reduction in oil production.