Saudi Arabia and Russia, the largest oil exporters, confirmed on Sunday that they will continue their additional voluntary cuts in oil production until the end of the year as concerns about demand and economic growth continue to pressure crude markets. The two countries said their cuts will be reviewed next month to consider extending, deepening or increasing them.
A source at the Ministry of Energy said in a statement that Saudi Arabia confirmed that it will continue its additional voluntary reduction of one million barrels per day, which means production of about nine million barrels per day for the month of December. The source was quoted as saying in the statement that this additional voluntary reduction comes in support of the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets.
Following the Saudi statement, Moscow also announced that it would continue an additional voluntary supply cut of 300,000 barrels per day on its exports of crude oil and petroleum products until the end of December. OPEC+, which includes members of the Organization of the Petroleum Exporting Countries (OPEC) and key allies including Russia, has been reducing production since last year in what it says is a precautionary measure to maintain market stability.
Oil hit its highest level in 2023 in September near $98 a barrel for Brent crude, although it has declined since then to trade at about $85 a barrel on Friday, despite support from the conflict in the Middle East. Saudi Arabia, OPEC’s de facto leader, first made the voluntary cut for July as an addition to a broad supply-restriction agreement first agreed by some OPEC+ members in April.
The Kingdom said in September that it would extend its additional voluntary reduction until the end of the year, and would review the decision monthly. Analysts had widely expected the Kingdom to confirm that it would extend its cuts in December.
The decision taken by OPEC+ in June already limits supplies until 2024. The next alliance is scheduled to meet on November 26 in Vienna.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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