Saudi Arabia's state-run oil company Saudi Aramco will provide its customers with 8.5 million barrels per day (bpd) of crude oil starting on May 1, the company said on Friday in a statement to the Saudi stock exchange Tadawul.
This includes oil supply to Aramco's domestic customers and for exports abroad, but the company did not furnish further details on its distribution.
Saudi Arabia is expected to cut its oil production by 3.5 million bpd, from 12 million bpd to 8.5 million bpd, under the terms of OPEC and its allies' agreement reached on April 12.
OPEC and non-OPEC oil producing countries, which include 23 nations dubbed as OPEC+, agreed to lower their total crude oil production by 9.7 million bpd for two months starting from May 1.
The output cut level is expected to reach as much as 20 million bpd when other oil-producing nations outside the OPEC+ group, including the U.S., Mexico, Canada, Brazil and Norway, also lower their oil outputs next month.
More than 20 million bpd of oversupply has been forecast this month until OPEC+ cuts take effect on May 1.
By Busranur Begcecanli