Saudi Arabia will extend its voluntary reduction of one million barrels per day for the second quarter of the current year, SPA reported, citing an unnamed source in the country’s ministry of energy.
The continuation of the production cut will be done in coordination with some of the countries participating in the OPEC Plus agreement, the report said.
The UAE also announced that it will extend its additional voluntary cut of 163,000 barrels per day (bpd), for the second quarter of 2024, in coordination with some OPEC Plus countries.
In a statement, the UAE said that its production will remain at 2.912 million bpd until the end of June 2024.
“Afterwards, in order to support market stability, these additional cut volumes will be reversed gradually subject to market conditions,” the statement said.
The voluntary cut in production by OPEC Plus countries began to be implemented in July 2023.
Saudi Arabia’s move to continue with the voluntary cut would mean that the Kingdom’s crude production will be approximately 9 million barrels per day, until the end of June 2024.
It is expected to restore these reduced quantities from July.
The SPA report indicated that the one million barrels per day reduction cut is in addition to the voluntary reduction of 500,000 barrels per day, which the Kingdom had previously announced in April 2023, and which extends until the end of December 2024.
The additional voluntary reduction is part of the precautionary efforts by OPEC Plus countries to support the stability and balance of oil markets.
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