Saudi Arabia to continue boosting Opec+ efforts to support stability of oil markets

Kingdom to extend voluntary cut of one million barrels per day

Saudi Arabia's King Salman heads a cabinet meeting on Tuesday. Photo: SPA
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Saudi Arabia, the world's largest oil exporter, will extend the voluntary cut of one million barrels per day that came into effect in July to include September, the cabinet said on Tuesday following its weekly meeting.

The kingdom will continue boosting Opec+ precautionary efforts to support the stability of oil markets, the cabinet said.

The production cut is in addition to the voluntary reduction announced by the kingdom in April, which will stay in effect until December 2024.

The cut, which first took effect in July, is aimed at supporting the stability and balance of oil markets, and could be further “extended and deepened”, the Saudi Energy Ministry said earlier this month.

At an Opec seminar last month, Saudi Energy Minister Prince Abdulaziz bin Salman said the group would do “whatever is necessary” to stabilise the oil market.

Prince Abdulaziz said the market would not be left “unattended” and the output policy announced on June 4 was “too big for people to comprehend”.

Oil demand is projected to breach 103 million bpd in August, driven by higher consumption in China and India.

Updated: August 08, 2023, 2:34 PM