Saudi extends 1m bpd oil output cut energy ministry

According to a statement from the oil ministry, Saudi Arabia will extend the voluntary cut of one million barrels per day… for another month to include the month of September. The energy ministry also mentioned the possibility of an extension or perhaps a deeper cut to the already implemented July cut.

With this change, the largest crude exporter in the world’s daily output is now at almost nine million barrels per day.

The voluntary cut comes to reinforce the precautionary efforts made by OPEC Plus countries with the aim of supporting the stability and balance of oil markets,” according to the energy ministry.

After the 23-nation OPEC+ alliance—which also includes Russia—met in June, Saudi Energy Minister Prince Abdulaziz bin Salman announced the decrease, adding that it may be extendable.

It followed a decision in April by several OPEC+ members to slash production voluntarily by more than one million bpd — a surprise move that briefly buttressed prices but failed to bring about lasting recovery.

Oil producers are grappling with falling prices and high market volatility, reflecting continued fallout from the Russian invasion of Ukraine and China’s faltering economic recovery. Saudi Arabia is counting on high oil prices to fund an ambitious reform agenda that could shift its economy away from fossil fuels.