Saudi Arabia and Russia will continue to implement their latest oil supply cutbacks for another three months.
The world’s biggest crude oil exporter will continue to cut its oil production by 1 million barrels a day, capping its output at approximately 9 million barrels a day in October, November and December, said an official source from the Ministry of Energy.
The move is meant to “reinforce the precautionary efforts” made by OPEC and its allies to “support the stability and balance of oil markets”, the source said.
The additional cut will be on top of the production limits Saudi Arabia had announced last April. The previous supply cuts have been scheduled until the end of December next year.
Russia will also cut its supply by 300,000 barrels a day during the same period, according to a separate statement.
The kingdom’s crude exports plummeted to a more than two-year low last month, following a decision by the Organization of Petroleum Exporting Countries (OPEC) and its allies to slash production to boost oil prices.
Saudi Arabia announced in June it would cut oil production by 1 million barrels a day in July. The production cut was extended to include August and September.
“In effect, the kingdom’s production for the coming months of October, November and December will be approximately 9 million barrels per day.”
The decision will be reviewed monthly.
“This cut is in addition to the voluntary cut previously announced by the kingdom in April 2023, which extends until the end of December 2024.”
