On Monday, Saudi Arabia extended its voluntary oil output cut of one million barrels per day (bpd) until August, raising oil prices.
“The kingdom’s production for the month of August 2023 will be approximately 9 million barrels per day,” an official source from the Ministry of Energy told the SPA.
The insider said the voluntary cut might continue beyond August.
After the Saudi statement, Russian Deputy Prime Minister Alexander Novak announced a 500,000-barrel-per-day oil export decrease in August.
Saudi Arabia also announced a voluntary cut with other OPEC+ members in April that lasts through December 2024.
Saudi Arabia, the de facto leader of OPEC, committed earlier this month to cut output deeply in July as part of an OPEC+ plan to limit supplies beyond 2024 to bolster oil prices.
After the Saudi decrease, Brent jumped 85 cents to $76.26 a barrel at 0915 GMT, overshadowing fears about a global economic slowdown and possible U.S. Federal Reserve rate hikes.
OPEC+, led by Russia, pumps 40% of global crude.
“This additional voluntary cut reinforces the precautionary efforts made by OPEC+ countries to support the stability and balance of oil markets,” the SPA official source said.
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