Saudi Extends: Saudi Arabia announced on Sunday its decision to extend oil supply cuts until June, aiming to stabilize prices. Riyadh will continue its voluntary reduction of one million barrels per day, initiated in July 2023, until the end of the second quarter of 2024, according to the Saudi Press Agency.
Following this period, the cut volumes will be gradually restored, contingent upon market conditions. The extension was coordinated with some OPEC+ other members, a coalition Riyadh co-leads with Moscow.
Saudi Extends New..
This announcement coincided with Russia’s pledge to reduce production by nearly half a million barrels in Q2 2024.
The initial voluntary cut by Riyadh came after an OPEC+ meeting in June 2023, following earlier decisions by some OPEC+ nations in April 2023 to collectively reduce production by over 1M bpd.
Despite temporary price boosts, these measures failed to sustainably lift prices. In October 2022, OPEC+ had agreed to slash output by 2M barrels daily, prompting tensions with the Biden administration, which criticized the move as aligning with Russia amid the Ukraine conflict.
This decision maintains Saudi Arabia‘s production at approximately nine million bpd, significantly below its 12M bpd capacity. The kingdom’s commitment to supply cuts reflects ongoing efforts to manage global oil markets and stabilize prices amidst geopolitical uncertainties.
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