Saudi Arabia has announced a voluntary cut in oil output of 500,000 barrels per day, spanning from May through the end of the year. The decision, disclosed by the kingdom’s government agency, the Saudi Press Agency (SPA), is framed as a proactive step to support overall market stability amid fluctuating conditions in global energy prices.
A spokesperson for the Ministry of Energy explained that the kingdom will implement these voluntary production cuts in coordination with various other OPEC and non-OPEC members participating in the declaration of cooperation known as the OPEC+ agreement. The message emphasizes that the measure is designed to help preserve balance in the oil market and to reduce volatility in supply and prices over the coming months.
Industry media coverage has highlighted the move as part of a broader strategy to respond to uncertainty in global energy markets. In April, Bloomberg reported, citing industry experts, that maintaining current production quotas under OPEC+ could be the most prudent approach given evolving market conditions and rising unpredictability. This perspective suggests that keeping quotas steady, rather than expanding output, may better shield markets from abrupt price swings.
Prior discussions at the OPEC+ technical and ministerial meetings also indicated a cautious stance toward altering the existing production framework. Reuters noted that, at the April 3 meeting of the OPEC+ committee, there was little appetite for a major change to the alliance’s oil production policy in the near term, underscoring the preference for stability over rapid shifts in policy during that period.
Earlier remarks from Prince Abdulaziz bin Salman, the Saudi Minister of Energy, referenced potential adjustments to production if Western countries set marginal price levels for crude from the Middle East. The prince’s comments reflect the sensitivity of the market to policy signals from major producers and consuming nations, and they underscore the kingdom’s willingness to adapt output in response to price benchmarks or broader market dynamics.