The main exporters of Petroleum, Saudi Arabia and Russiaconfirmed on Sunday that they will maintain their additional voluntary oil production cuts until the end of the year, as concerns about demand and economic growth continue to weigh on crude markets.
Both countries indicated that they will review their cuts next month to study the possibility of expanding, deepening or increasing them.
Saudi Arabia confirmed that it will continue with its additional voluntary cut of 1 million barrels per day (bpd), which translates into production of about 9 million bpd by December, an Energy Ministry source said in a statement.
“This additional voluntary cut reinforces the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets,” the source said in the statement.
Following the Saudi statement, Moscow also announced that it would maintain its additional voluntary supply cut of 300,000 bpd from its crude oil and petroleum products exports until the end of December.
OPEC+, made up of the countries of the Organization of the Petroleum Exporting Countries (OPEC) and its main allies, including Russia, has been cutting production since last year in what it considers a preventive action to maintain market stability.
Oil reached a 2023 high near US$98 per barrel of Brent crude in September, although it has since weakened to trade around US$85 per barrel on Friday, despite the conflict in the Middle East.
Saudi Arabia, OPEC’s de facto leader, first announced the voluntary cut for July as a complement to a broad supply-limiting deal first agreed by some OPEC+ members in April.
In September, the kingdom said it would extend its additional voluntary cut until the end of the year and would review the decision monthly.
Analysts expected the kingdom to confirm the extension in December. The decision adopted in June by OPEC+ already limits supply until 2024.
The next meeting of the alliance is scheduled for November 26 in Vienna.
Source: Gestion
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