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Saudi Arabia confirms that it will cut its annual production by one million barrels

Date: February 23, 2024 Time: 13:11:08

Saudi Arabia has announced this Monday that it will extend the “voluntary” cut in its crude supply by one million barrels per day during August, a measure that began to be applied this July, and will conclude that this policy is “extendable” in the future. A limitation on its oil production that is added to the pumping limitations to which the Arab country has committed itself in OPEC+. “The kingdom of Saudi Arabia will extend the voluntary cut of one million barrels/day, which began in July, for another month to include August with the possibility of extending it,” the Saudi Ministry of Energy explained in a statement.

“The kingdom’s production in August 2023 will be approximately 9 million barrels per day,” notes the note from the world’s leading oil-exporting country. In its statement, Saudi Arabia also highlights that “this cut is in addition to the (half million barrels per day) voluntary program previously announced by the kingdom in April 2023, and which runs until the end of December 2024.”

Riyadh refers to the cut program signed within OPEC+, made up of the Organization of Petroleum Exporting Countries (OPEC) and ten external allies, which last June decided to extend the current cuts for one more year, until the end of 2024. of the pumping that it will contain to avoid the drop in the price of crude oil. These cuts were adopted in two phases, one in October (2 mbd) and another in April (1.6 mbd), and were due to expire on December 31.

Russia will cut another half million barrels

Russia has also announced that it will cut oil exports by 500,000 barrels per day in August, the country’s deputy prime minister, Alexander Novak, announced on Monday. “It’s additional,” he highlighted in statements collected by the agency. In March, the Asian giant applied a voluntary cut of 500,000 barrels per day and announced that it would extend it until the end of June, although, later, in April, it altered this reduction until the end of anus.

The Saudi statement also ensures that “the additional voluntary reduction (of the Saudi supply) reinforces the precautionary efforts made by the OPEC+ countries with the aim of supporting the stability and balance of the oil markets.” Saudi Arabia, which has about 17% of the world’s crude reserves, has cut its production several times as part of the OPEC+ policy, which the kingdom leads together with Russia.

The previous cut was last April and was half a million barrels per day, in a voluntary decrease in the total jump of OPEC+, estimated at 1.16 million barrels per day.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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