Introduction

An official source in the Saudi Ministry of Energy announced today, Monday, that the Kingdom of Saudi Arabia will extend the voluntary cut of one million barrels per day, which began in July, by one more month, including August. with the possibility of its extension, and thus the production of the Kingdom in August 2023 will be as it is. Approximately 9 million barrels per day.

The source indicated that this reduction is in addition to the voluntary reduction previously announced by the Kingdom in April 2023 AD and extended until the end of December 2024 AD.

Further Reductions

The source confirmed that this additional voluntary cut comes to reinforce precautionary efforts being made by the OPEC+ countries to maintain stability and balance in the oil markets, Saudi press agency SPA was quoted as saying.

Russia’s Announcement

This came after Russia announced it would cut oil exports by half a million bpd in August.

And the Russian Deputy Prime Minister said today, Monday, that his country will cut oil exports by 500,000 barrels a day in August, Reuters reported.

“As part of efforts to balance the oil market, Russia will voluntarily reduce its oil supplies in August by 500,000 barrels per day by reducing this volume of its exports to world markets,” the statement said.