(MENAFN) Saudi Arabia has announced its decision to extend its voluntary oil production cut of 500,000 barrels per day (bpd) until the end of December 2024. The extension was made in coordination with other countries participating in the OPEC+ agreement, according to the Kingdom's energy ministry. The voluntary reduction was initially agreed upon during the OPEC+ meeting held on Sunday. In addition to the extension, Saudi Arabia also declared an additional voluntary oil output cut of 1 million bpd for the month of July, with the possibility of further extensions.
As a result of these measures, Saudi Arabia's production will be limited to 9 million bpd in July, with the total voluntary cut amounting to 1.5 million bpd. The intention behind this additional reduction is to strengthen the precautionary efforts undertaken by OPEC+ countries, aimed at supporting the stability and balance of oil markets. The Saudi Press Agency reported that this decision reflects the Kingdom's commitment to managing global oil supplies in a responsible manner.
Furthermore, the OPEC+ member countries reached an agreement on a new output target of 40.46 million bpd, effective from 2024. This target reflects the collective efforts of the group to ensure sustainable oil production levels and maintain market equilibrium. By establishing this target, OPEC+ aims to regulate the supply of oil in line with global demand and promote a stable pricing environment.
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