The Strategist

Saudi Arabia extends oil production cut by 1M bps until the year end

09/06/2023 - 10:23

Before that, the voluntary cut was first planned for July and then expanded to include August and September.

Jonathan Cutrer
Jonathan Cutrer
Saudi Arabia has chosen to continue the voluntary cut until the end of 2023 by voluntarily cutting its oil output by 1 million barrels per day (bpd), reports The Saudi Press Agency quoting an authorized source inside the Kingdom's Ministry of Energy.

Prior to that, the voluntary decrease was initially planned for July before being expanded to include August and September. In addition, as stated in the report, the decision to reduce production will be revisited each month to take into account both potential increases in production and subsequent production cuts.

Taking into account the reduction, Saudi Arabia will continue to produce 9 million bpd of oil in October, November, and December as in the preceding months. The report mentions that in addition to the prior choice to lower production by 500 thousand bpd, a voluntary reduction of 1 million bpd has been made. Thus, the state will have reduced its production by a total of 1.5 million bpd in September.