The report of the Kingdom’s decision to extend the output cut through September came just hours before the OPEC+ meeting scheduled for Friday…reports Asian Lite News
The Kingdom of Saudi Arabia has extended the voluntary cut of oil production – one million barrels per day – which has gone into implementation in July, for another month, that is September.
An official source from Ministry of Energy confirmed that the production cut can be extended or extended and deepened.
In effect, the Kingdom’s production for the month of September 2023 will be approximately 9 million barrels per day. The source also noted that this cut is in addition to the voluntary cut previously announced by the Kingdom in April 2023, which extends until the end of December 2024.
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The ministry 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.
The report of the Kingdom’s decision to extend the output cut through September came just hours before the OPEC+ meeting scheduled for Friday.
OPEC+ pumps about 40 percent of the world’s crude and has cut its output target by 3.66 million bpd, amounting to 3.6 percent of global demand, the Arab News reported.
In June, Saudi Energy Minister Prince Abdulaziz bin Salman stressed the need to trust OPEC+ and called it the most effective international organization working to restore market stability.
“It was just our sensibility, if you will call it, that the environment was not sufficiently allowing confidence to be there. So, taking a precautionary measure tends to put you on the safe side. And it is part of the typical rhythm that we have installed in OPEC, which is being proactive, being preemptive,” Prince Abdulaziz told CNBC.
In July, the UAE’s Minister of Energy and Infrastructure Suhail bin Mohammed Al Mazrouei echoed similar views and said that OPEC+ always strives for oil market stability by ensuring a balance in fundamentals between supply and demand, it was reported.
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