Saudi Arabia Extends Voluntary Oil Production Cut to September

The Kingdom of Saudi Arabia said Thursday it will extend its voluntary oil production cut of one million barrels per day (bpd) to include the month of September.

The cut, which went into effect in July, can be extended or extended and deepened, according to an official source from the Ministry of Energy told SPA.

In effect, the kingdom’s production for the month of September 2023 will be approximately 9 million bpd.

The source also noted that this oil production cut is in addition to the voluntary cut previously announced by the kingdom in April 2023, which extends until the end of December 2024.

The source confirmed that this additional voluntary cut comes to reinforce the precautionary efforts made by OPEC Plus countries with the aim of supporting the stability and balance of oil markets.

Saudi Arabia’s decision to extend its voluntary oil production cut is not part of the OPEC+ agreement, but the JMMC will meet on Friday to review market fundamentals. The JMMC cannot make policy decisions, but it could call an extraordinary meeting of OPEC ministers to do so. Oil prices were little changed after the announcement.

In June, OPEC+ – the Organization of the Petroleum Exporting Countries and allies – agreed on a broad deal to limit oil supply into 2024, and Saudi Arabia pledged an additional voluntary cut for July.

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