The Strategist

Saudi Arabia to extend voluntary oil production cut for another month

07/04/2023 - 07:13

Within the framework of OPEC+, Saudi Arabia will extend its voluntary cut of 1 million barrels per day (bpd) from oil output for the month of August.

The news were reported by the Saudi Press Agency, who cited an unidentified official source in the Kingdom's Energy Ministry.

The agency reported that Saudi Arabia will continue to produce 9 million barrels per day of oil. The source stated: "This further voluntary decrease is designed to reinforce the preventative actions taken by OPEC+ to safeguard the stability and balance of oil markets.

May saw an agreement between Russia, Saudi Arabia, Iraq, the UAE, Kuwait, and other OPEC+ nations to reduce output by a total 1.6 million bpd. Later, Saudi Arabia declared that it would voluntarily reduce its output in July by an additional 1 million barrels per day. The steps were done to stabilize the oil market.