Saudi Arabia has decided to extend its voluntary reduction of oil production by 1 million barrels per day (bpd) until the end of 2023. This decision was announced by an official source in the Ministry of Energy of Saudi Arabia.
The voluntary production cut was originally implemented for July and later extended for August and September. The kingdom plans to review this decision on a monthly basis, considering both further production cuts and increases.
For the months of October, November, and December, Saudi Arabia's oil production, including the reduction, will remain at 9 million bpd. The voluntary reduction of 1 million bpd adds to the earlier decision to reduce production by 500,000 bpd. Therefore, the total production reduction by Saudi Arabia in September will amount to 1.5 million bpd.
This move follows Saudi Arabia's announcement after the OPEC+ meeting in Vienna on June 4 that it would implement a voluntary production cut of 1 million bpd for July, with the possibility of an extension. The additional reduction is aimed at maintaining stability and balance in the global oil market.
In May, several OPEC+ member countries began voluntarily reducing oil production by a total of 1.66 million bpd, with Saudi Arabia contributing a reduction of 500,000 bpd. Initially, this measure was set to be in effect until the end of 2023, but during the OPEC+ meeting, all supporting countries agreed to extend it until the end of 2024.
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Based on materials from TASS