Saudi Arabia continues voluntary oil production cut of one million barrels per day

MENA

Published: 2024-03-03 21:05

Last Updated: 2024-04-17 05:13


Manifa offshore oil field (File photo)
Manifa offshore oil field (File photo)

Saudi Arabia has decided to continue its oil production cut by one million Barrels Per Day (BPD) until the end of June 2024, maintaining its strategy aimed at supporting oil prices.

A source within the Saudi Ministry of Energy stated that the kingdom will extend its voluntary production cut of one million barrels per day, which began in July 2023 for the second quarter of the current year - June 2024.

"Afterwards, and in support of market stability, these additional cut volumes will gradually be restored according to market conditions,” the source said.

He pointed out that this additional voluntary cut is aimed at enhancing the precautionary efforts undertaken by the OPEC+ countries to support the stability and balance of oil markets," referring to the oil bloc consisting of 23 countries led by Russia.

According to the Saudi Press Agency "SPA," this decision comes shortly after Moscow also announced on Sunday a cut in its oil production by approximately 500,000 barrels per day by the end of the second quarter of 2024.

Thus, the kingdom's production will reach "approximately 9 million barrels per day," which is less than its production capacity of 12 million BPD.

Since the end of 2022, OPEC+ has reduced its production by about 5 million BPD in an attempt to raise prices undermined by economic uncertainty due to rising interest rates.

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