“As part of efforts to ensure that the oil market remains balanced, Russia will voluntarily reduce its oil supplies in August by 500,000 barrels per day by reducing that amount of its exports to global markets,” he said in a statement.
And Saudi Arabia had announced, a short while ago, quoting an official in the Ministry of Energy, that it would extend the voluntary cut in oil production at a rate of one million barrels per day, which began to be implemented in July, for another month in August, with the possibility of extending it.
According to the agency, the Kingdom’s production after this decision will be in August 2023, 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 and extending until the end of December 2024.
He added, “This additional voluntary reduction comes to reinforce the precautionary efforts made by OPEC Plus countries with the aim of supporting the stability and balance of oil markets.”
Oil prices rose, on Monday, in the wake of Saudi Arabia’s announcement to extend voluntary production cuts until August.
And last June, Saudi Arabia announced, during the OPEC Plus meeting, the implementation of an additional voluntary reduction in its crude oil production, amounting to one million barrels per day, starting in July for a month that can be extended.
It is noteworthy that the OPEC Plus coalition (the Organization of Petroleum Exporting Countries “OPEC” and its allies) decided, at its last meeting in Vienna last month, to reduce the target total production level of crude oil for its member states in 2024 to 40.46 million barrels per day.
The target production in 2024 is about 1.4 million barrels per day less than the production level approved by the OPEC Plus alliance last October, when it decided to cut the production ceiling.
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