Saudi Arabia Continues Voluntary Oil Cut

Saudi Arabia proceeds its voluntary oil cut of 1 mln barrel per day (bpd), making the Kingdom’s production in December about 9 mln bpd, announced a source of Ministry of Energy.

“This decision will be reviewed next month to consider extending or increasing the cut in supply or deepening the production,” added the source.

The voluntary oil output cuts first started in July 2023, following some OPEC+ members’ agreement on limiting oil supply in April. It was later extended till the end of December and is set t to extend till the end of the year.

Besides KSA, Russia has been voluntarily decreasing exports during recent months, as it is committed to cutting exports by 300,000 bpd till the end of the year.

Motives Behind Oil Cut

The oil cut is part of OPEC+ efforts to maintain stability of oil markets, affirmed the source.

Digging deep into motives of this reduction, Financial Times reported that the Crown Prince is aiming to boost oil prices to finance his economic reform program through cutting oil supplies.

The Two Oil Giants  stirring concerns

Russia and KSA’s decision is provoking fear of global Inflation.

This decision has been a blow to Biden administration which is trying to keep the prices under control with the elections coming up.

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