Saudi Arabia announced on Thursday its plan to extend its production cuts of 1 million barrels per day (bpd) to September, with a probability of further extensions, the official Saudi news agency SPA reported, citing energy ministry sources.
The pledged production reduction is an extension of the country’s existing 1 million bpd and 'can be extended or extended and deepened', according to the source.
With the latest production cut, the total production of the world’s largest exporter of crude oil will be approximately 9 million bpd in September.
The source also noted that the cut is 'in addition to the voluntary cut previously announced by the Kingdom in April 2023, which extends until the end of December 2024.'
The source confirmed that this additional voluntary cut comes to reinforce the precautionary efforts made by OPEC+ countries to support oil market stability and balance.
Saudi Arabia announced in July its intention to unilaterally extend production cuts of 1 million barrels per day (bpd) through August.
Russia followed suit with an announcement of a voluntary reduction of exports by 500,000 bpd in August, on top of the 700,000 bpd in place since March.
Algeria later said it would also reduce output by an extra 20,000 bpd in August, bringing its total cut to 68,000 bpd since April.
The new reductions were additions to the group’s already-existing output cap of around 2 million bpd announced in October 2022 and 1.6 million bpd announced in May.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr