Saudi Arabia to continue voluntary oil cut until end of Dec 2023

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OPEC forecasts demand for crude to reach 116 million barrels per day (mbd) by 2045 under its main scenario, a 16.5 percent increase from the 99.4 mbd in 2022. (AFP)
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  • 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.
  • 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.

Riyadh, Saudi Arabia — Saudi Arabia has announced it will continue the voluntary cut of one million barrels per day, which went into implementation in July 2023 and was later extended until the end of December 2023.

The Kingdom’s production in the month of December 2023 will be approximately 9 million barrels per day.

SPA reported that this voluntary cut decision will be reviewed next month to consider extending the cut, deepening the cut, or increasing production. 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.

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.

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.

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