MOSCOW, Aug. 3 Saudi Arabia is extending a voluntary 1 million bpd cut in oil production that began in July into September, the Saudi news agency SPA reports. referring to an official source in the Ministry of Energy.
«An official source at the Energy Department has announced that the Kingdom of Saudi Arabia will extend the voluntary cut of 1 million barrels per day, which went into effect in July, by another month to include September,» the statement said.
It is noted that the reduction in production in the future can be extended or increased. In fact, the kingdom's production will be about 9 million barrels per day in September, the state agency adds. «The source confirmed that this additional voluntary reduction is intended to strengthen the precautionary measures taken by the OPEC + countries in order to maintain stability and balance in the oil markets,» the publication concludes.
Saudi Arabia announced after the June 4 OPEC + meeting that in July for a month will further reduce production by 1 million barrels per day. The kingdom later announced that it was extending the cut to August.
In addition, in early April, a number of OPEC+ countries also announced an additional voluntary reduction in oil production from May to the end of the year — in the amount of 1.16 million barrels per day (above its current quotas), and the kingdom had a reduction of 0.5 million barrels per day.
OPEC + itself, as part of the agreement, reduces production by the end of this year by a total of 2 million barrels per day. Saudi Arabia's quota is 10.478 million barrels per day, and reductions from August 2022 levels are 526 thousand barrels per day.