Saudi Arabia extends oil production cut by one million bpd for 3 more months
An official spokesperson from the Ministry of Energy has officially confirmed that Saudi Arabia will prolong its voluntary reduction in oil production by an additional one million barrels per day (bpd) for the next three months.
This move follows the initial implementation of the production cut in July, which was subsequently extended throughout August and September. The extension will now persist for an additional three months, culminating at the close of December 2023.
According to reports from the Saudi Press Agency, this decision will result in Saudi Arabia’s oil production for the forthcoming months of October, November, and December being expected to hover around 9 million bpd. It is crucial to note that the Ministry of Energy plans to review this voluntary cut on a monthly basis, retaining the flexibility to either deepen the reduction or ramp up production as circumstances dictate.
Moreover, the official source emphasized that this production cut is in addition to the voluntary reduction announced by Saudi Arabia in April 2023, which is set to remain in effect until the conclusion of December 2024. This added voluntary reduction underscores the Kingdom’s unwavering commitment to fortifying the precautionary measures undertaken by OPEC Plus member nations.
These collective efforts are aimed at bolstering the stability and equilibrium of global oil markets, a shared objective in response to the ever-changing dynamics of the oil industry.