Report: Saudi Arabia to prolong 1 mln bpd oil output cut in 2023

MOSCOW, Nov 7 (PRIME) -- Saudi Arabia has confirmed its intent to prolong its voluntary reduction of oil production by 1 million barrels per day until the end of the year, Saudi state news agency SPA reported on November 5 citing an official Energy Ministry source.

“An official source in the Energy Ministry said that the Kingdom of Saudi Arabia will continue voluntary reduction of 1 million barrels per day that came in force in July 2023 and was later prolonged until the end of December 2023. Thus, the Kingdom’s production in December 2023 will amount to about 9 million barrels per day,” SPA reported.

The source also said that Saudi Arabia would analyze the market situation in December and use the data to decide wether it would prolong the voluntary reduction, deepen the cut even further, or raise production, the news agency reported.

Russian Deputy Energy Minister Alexander Novak told reporters on November 5 that the country would continue with reduction of exports of oil and oil products by a combined figure of 300,000 barrels per day until the end of December as well.

“Russia will continue its voluntary reduction of supplies of oil and oil products to the global markets of 300,000 barrels per day, which came in force in September and October 2023, until the end of December 2023. We will analyze the market next month to decide on widening the cut or raising production of oil,” he said.

Also, Russia has cut its oil production by an additional 500,000 barrels in March as compared with the February oil output of 9.95 million barrels per day, and the measure will be in effect until the end of December 2024. In September 2023, Novak said that the government would revise the additional voluntary production cut every month depending on the condition of the global oil market.

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