The Saudi Arabia Ministry of Energy has confirmed it will continue its voluntary reduction of one million barrels of oil per day, according to the Saudi Press Agency.
This reduction was initially implemented in July and was extended through the end of December 2023. As a result, the Kingdom’s oil production for December 2023 is expected to be around 9 million barrels per day.
The Saudi Press Agency also reported the decision regarding the voluntary reduction will be subject to review in the coming month.
The Kingdom will continue to explore options such as extending the cut, deepening the reduction, or increasing production will be considered.
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Additionally, this reduction comes after a previously announced voluntary cut by the Kingdom in April 2023, which is set to continue until the end of December 2024.
The Kingdom of Saudi Arabia is said to be taking these additional voluntary measures to support the precautionary efforts undertaken by OPEC Plus member countries. These efforts aim to contribute to the stability and equilibrium of global oil markets.
Brent crude futures settled 29 cents, or 0.34%, higher at $85.18 a barrel, while U.S. West Texas Intermediate crude was up 31 cents, or 0.4%, at $80.82.
Russia also announced it would continue its additional voluntary cut of 300,000 bpd from its crude oil and petroleum product exports until the end of December.
*Additional reporting by Reuters.
