An official source in the Saudi Ministry of Energy announced on Sunday that Riyadh will voluntarily extend its reduction in oil production for an additional 3 months, until June 2024.
The source explained to the Saudi News Agency (SPA) that Riyadh will extend its voluntary production cut of one million barrels per day, which began in July 2023, for the second quarter of this year, in coordination with some countries participating in the OPEC+ agreement.
The source indicated that with the implementation of this decision, Saudi Arabia’s oil production will reach approximately 9 million barrels per day until the end of June 2024.
He added that after that, and to support market stability, these additional reduction amounts will be restored gradually, according to market conditions.
The source stated that this reduction is in addition to the voluntary reduction of 500,000 barrels per day, which was previously announced by Riyadh, in April 2023 AD, and which extends until the end of December 2024 AD.
The source confirmed that this additional voluntary reduction comes to strengthen the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets.
Russia and a number of members of the OPEC+ group, including Kuwait and Algeria, also announced an extension of the oil production cut for a period of 3 months, continuing until the end of next June.
Russian Deputy Prime Minister Alexander Novak announced in a statement the extension of the oil production cut for an additional 3 months until the end of next June, by 471 thousand barrels per day.
He explained that Russia will make an “additional” voluntary reduction in its production of 350,000 barrels per day during the month of April, 400,000 in May, and 471,000 in June, as part of an agreement to reduce production with other countries producing within the framework of “OPEC+.”
Meanwhile, Kuwait News Agency, KUNA, quoted Oil Minister Imad Al-Ateeqi as saying that his country will reduce its oil production by 135,000 barrels per day in June instead of the end of this March, indicating that his country’s oil production amounts to 2.413 million barrels per day.
On the other hand, the Algerian Ministry of Energy announced its decision to extend the voluntary and additional reduction in its oil production by 51 thousand barrels per day, for an additional 3 months, in coordination with some countries participating in the coalition.