(MENAFN) In a move to support oil market stability and balance, Saudi Arabia has announced the extension of its voluntary cut of 500,000 barrels per day (bpd) until the end of December 2024. This decision was made in coordination with other countries participating in the OPEC+ agreement, as confirmed by the Kingdom's energy ministry on Sunday. The voluntary reduction, agreed upon during the OPEC+ meeting, will help control the global oil supply and support price stability.
Additionally, the Saudi energy ministry announced an extra voluntary cut of 1 million bpd for the month of July, with the possibility of further extensions. Consequently, the Kingdom's oil production will reach 9 million bpd in July, with a total voluntary cut of 1.5 million bpd. This measure is aimed at bolstering the precautionary efforts undertaken by OPEC+ member countries to maintain the stability and balance of oil markets amid ongoing uncertainties.
In line with the decisions made, the OPEC+ group also established a new output target of 40.46 million bpd starting from 2024. This agreement reflects the collective efforts of the member countries to manage oil production levels and align them with market demands. The announcement signifies the continued commitment of Saudi Arabia and other participating nations to cooperate and ensure a sustainable and well-regulated oil market.
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