Saudi Arabia, Russia extend oil supply cuts amidst increasing demand
Date
10/5/2023 9:39:24 AM
(MENAFN) In a bid to balance global oil markets amidst tightening supply and surging demand, Saudi Arabia and Russia have jointly declared an extension of their voluntary oil output and export reductions until the close of the current year. The two nations, serving as key figures within the OPEC+ consortium, released separate official statements, solidifying their commitment to these production cuts. These announcements came just hours ahead of a scheduled online meeting of the group's ministerial monitoring panel.
According to the statement from the Saudi Ministry of Energy, Riyadh has pledged to uphold its cut in crude output, persisting with a reduction of 1 million barrels per day (bpd). This means that for the months of November and December, Saudi Arabia's production is projected to stand at around 9 million bpd. Notably, the ministry highlighted that this decision is subject to review in the upcoming month, with a potential consideration of either intensifying the cuts or adjusting production levels.
This coordinated effort by Saudi Arabia and Russia reflects their commitment to stabilizing global oil markets in the face of evolving economic and geopolitical dynamics. The decision to extend these voluntary production cuts signifies a strategic move to manage the escalating demand for oil, while simultaneously preventing any potential market imbalances. The actions of these two major oil-producing nations hold considerable weight in influencing the broader trajectory of the energy market, thereby impacting economies around the world.
MENAFN05102023000045015687ID1107196781
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.