Saudi Arabia has decided to voluntarily reduce oil production by 1 million barrels per day and continue until the end of 2023. In this respect reports The Saudi Press Agency cited an official source at the Kingdom’s Ministry of Energy.
We are talking about an additional production cut of 1 million barrels per day, which was implemented in July and extended until August and September. Thus, Saudi Arabia’s actual production in the October-December period will be around 9 million barrels per day.
Saudi Arabia announced on September 9 that it had extended production cuts until the end of the year, but would review the decision every month.
The Kingdom explained the additional reduction by the need to strengthen the measures taken by OPEC+ countries to maintain stability and balance in the oil market. In April, Riyadh announced a voluntary cut in production that will last until the end of 2023.
For this reason, Saudi Arabia continues to maintain its cautious policy in order to prevent excess supply and the collapse in oil prices.
Antonov, formerly an analyst named Five drivers of rising oil prices.
Source: Gazeta
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