Saudi Arabia Extends Voluntary Oil Cut Of 1mln Barrels Per Day Until Mid-2024

Saudi Arabia announced on Sunday it would extend oil supply cuts through June as part of a bid to prop up prices.

An Energy Ministry source announced Riyadh “will extend its voluntary cut of 1 million barrels per day, which was implemented in July 2023, until the end of the second quarter of 2024,” the official Saudi Press Agency reported.

The decision was taken in coordination with other members of the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, to ensure stability of the global crude markets.

With the extension in the production cuts, Saudi Arabia’s output will remain at around 9 million bpd.

The cuts would be reversed gradually according to market conditions, the SPA said.

Russia will cut oil production and exports by an additional 471,000 bpd in the second quarter, in coordination with some OPEC+ participating countries, Russian Deputy Prime Minister Alexander Novak said.

OPEC+ in November agreed to voluntary cuts totaling about 2.2 million bpd for the first quarter, led by Saudi Arabia rolling over its own voluntary cut.

OPEC+ members announce the cuts individually. Kuwait said it would cut its oil output by 135,000 bpd through June, while Algeria will curb its output by 51,000 bpd and Oman will reduce output by 42,000 bpd.

OPEC+ has implemented a series of output cuts since late 2022 to support the market.