Saudi Arabia extends oil supply reductions of 1M barrels per day until June
(MENAFN) On Sunday, Saudi Arabia declared its intention to prolong oil supply reductions until June as a measure to support and stabilize prices.
A source from the energy Ministry announced that Saudi Arabia “will extend its voluntary cut of 1 million barrels per day, which was implemented in July 2023, until the end of the second quarter of 2024,” an official Saudi news agency said.
The decision was made in conjunction with other members of the Organization of the petroleum Exporting Countries and their allies, known as OPEC+, with the aim of maintaining stability in the global crude markets.
As a result of the extended production cuts, Saudi Arabia will maintain its output at approximately 9 million barrels per day (bpd). According to reports from the Saudi Press Agency (SPA), the cuts will be gradually reversed in line with market conditions.
Additionally, Russian Deputy Prime Minister Alexander Novak announced that Russia will reduce its oil production and exports by an additional 471,000 bpd in the second quarter, in collaboration with certain OPEC+ participating nations.
OPEC+ had previously agreed to voluntary cuts totaling around 2.2 million bpd for the first quarter, with Saudi Arabia leading by example with its own extended voluntary cut.
Each member of OPEC+ announces its cuts individually. Kuwait has stated it will reduce its oil output by 135,000 bpd through June, while Algeria plans to curb its output by 51,000 bpd, and Oman intends to decrease output by 42,000 bpd.
Since late 2022, OPEC+ has implemented a series of output cuts aimed at supporting the market amidst fluctuating conditions.
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