Riyadh, Saudi Arabia — Saudi Arabia will continue its voluntary cut of one million barrels per day, which was announced in July 2023 and extended regularly since, until the end of December 2023.
The Kingdom’s production in the coming months November and December will be approximately 9 million barrels per day, the country’s energy ministry said.
It added the decision will be reviewed next month to consider deepening the cut or increasing production. The 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 ministry said.
Riyadh, the world’s biggest crude exporter, first announced its cut after a June meeting of the 23-nation OPEC+ alliance, which also includes Russia.
A statement in early August revealing the cut would last through September included a warning that it could be “deepened”, but Tuesday’s announcement has kept it at the same level for now.
The unilateral Saudi cut followed a decision in April by several OPEC+ members to slash production voluntarily by more than one million bpd — a surprise move that briefly buttressed prices but failed to bring about lasting recovery.
Last October, OPEC+ agreed to reduce output by two million barrels per day.
That decision riled the United States, which at the time accused Saudi Arabia, a security partner, of siding with Russia in the war in Ukraine.
Oil prices increased in July, the first month the Saudi-only cut took effect, clearing the $80 per barrel threshold analysts often say Riyadh needs to balance its budget, though the various production cuts could push that threshold higher.