- Oil exporters will continue with their additional voluntary oil output cuts till the end of the year.
- This will translate into a production of around 9 million bpd for December.
Major oil exporters, Saudi Arabia and Russia, have confirmed that they would continue their additional voluntary oil output cuts until the end of the year. This is as concerns over demand and economic growth continue to weigh on crude markets. Both countries said their cuts would be reviewed next month to consider extending, deepening or increasing it.
A source at the Ministry of Energy said in a statement that Saudi Arabia confirmed it would continue with its additional voluntary cut of 1 million barrels per day (bpd). This will translate into a production of around 9 million bpd for December. The source stated, “This additional voluntary cut reinforces the precautionary efforts made by OPEC and countries to support the stability and balance of oil markets.” Following the Saudi statement, Moscow announced it would continue its additional voluntary supply cut of 300,000 bpd from its crude oil and petroleum product exports until the end of December.
OPEC, which comprises the countries of the Organization of the Petroleum Exporting Countries (OPEC) and its leading allies, including Russia, has been cutting output since last year. What it says is preemptive action to maintain market stability. Also, Saudi Arabia, OPEC’s DE-facto leader, first made the voluntary cut for July as an addition to a broad supply-limiting deal first agreed by some members of OPEC in April. The kingdom said in September it would extend its additional voluntary cut until the end of the year and review the decision monthly. Likewise, analysts had widely expected the kingdom to confirm it would extend its cut in December. In June, OPEC already decided to limit supply to 2024. The alliance is due to meet on November 26 in Vienna.