Saudi Arabia and Russia deepen oil cuts

Saudi Arabia intends to continue the voluntary reduction of oil production, adopted for July in the amount of 1 million barrels per day, and extend it to August. This was reported by the Ministry of Energy of the country.

Thus, Saudi Arabia's oil production in August will remain at about 9 million barrels per day. The Ministry of Energy stressed that this additional reduction is aimed at strengthening the precautionary measures taken by OPEC+ to ensure the stability and balance of oil markets.

In early June, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman said that the reduction in oil production by 1 million barrels per day, introduced from July 1 for one month, could be extended. This decision was made at the OPEC+ ministerial meeting, where it was also decided to reduce oil production quotas in 2024 and extend voluntary restrictions for several OPEC+ countries, including Russia, for the whole of next year.

In May of this year, oil production in Saudi Arabia amounted to 9.977 million barrels per day, which corresponds to the declared levels, taking into account the restrictions adopted both within OPEC+ and in the form of voluntary reductions by several OPEC+ states from May 2023.

In addition, it should be noted that Russia also decided to voluntarily reduce oil supplies by 500 thousand barrels per day in August. This reduction will be carried out by reducing exports by the specified amount. At the same time, the Minister of Energy of the Russian Federation Alexander Novak did not specify from which month the reduction will be carried out and to what level.