DUBAI: Top oil exporter Saudi Arabia will continue with its voluntary oil output cut of 1 million barrels per day (bpd) until the end of the year, an official source at the ministry of energy said on Sunday.
Based on the decision, Saudi Arabia’s production in December will be around 9 million bpd, the source said in a statement.
“This additional voluntary cut comes to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets,” the source was quoted as saying in the statement.
Oil settles down, posts weekly loss as geopolitical risk premium ebbs
Oil hit a 2023 high in September at near $98 a barrel for Brent crude, although it has since weakened to trade around $85 a barrel on Friday. Concerns about economic growth and demand have weighed on prices, despite support from the conflict in the Middle East.
Saudi Arabia first made the voluntary cut for July as an addition to a broad supply-limiting deal first agreed by some members of OPEC+ in April.
The kingdom said in September it would extend its additional voluntary cut until the end of the year, and review the decision monthly.
Analysts had widely expected the kingdom to confirm it would extend its cut in December.
A June decision by OPEC+, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, already limits supply into 2024.
The alliance is due to meet on November 26.
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