Saudi Arabia and Russia have said they were continuing voluntary oil cuts of 1.3 million barrels per day (bpd) to year-end.
Saudi Arabia on Wednesday extended its one million bpd voluntary crude oil production cut until the end of the year 2023.
An official source at the Ministry of Energy announced that the Kingdom would continue with its voluntary oil output cut of one million bpd for the month of November and until the end of the year and that it would review the decision again next month.
The Kingdom’s production for November and December will be approximately 9 million bpd, the ministry said in a statement.
The source also explained that this reduction is in addition to the voluntary reduction that the Kingdom had previously announced in April 2023 and which extends until the end of December 2024.
The ministry source confirmed that this additional voluntary reduction comes to strengthen the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets.
Saudi Arabia first implemented the additional voluntary cut in July and has since extended it on a monthly basis.
Saudi Energy Minister Prince Abdulaziz bin Salman, who chairs the Joint Ministerial Monitoring Committee (JMMC), last month said OPEC+ cuts were needed to stabilize the market, and prices were not being targeted.
Deputy Prime Minister Alexander Novak said that Russia will continue the voluntary export cut of 300,000 bpd until the end of December too, as previously announced.
On output, he said: “Next month, a market analysis will be carried out in order to make a decision on whether to deepen the reduction or increase oil production.”
Novak said that joint oil supply cuts by Saudi Arabia and Russia had helped to balance global oil markets.
He also said Russia’s ban on gasoline and diesel exports had had a positive effect on the domestic fuel market.
The JMMC held a meeting via videoconference on Wednesday and made no changes to the group's oil output policy.
“The committee will continue to closely assess market conditions,” noting that the countries “stand ready to take additional measures at any time, building on the strong cohesion of OPEC and participating non-OPEC oil-producing countries.”
“The committee also expressed its full recognition and support for the efforts of the Kingdom of Saudi Arabia aimed at supporting the stability of the oil market and reiterated its appreciation for the Kingdom’s additional voluntary cut of 1 million barrels per day and for extending it till end of December 2023.”
“The committee also acknowledged the Russian Federation for extending its additional voluntary reduction of exports by 300 kbd till the end of December 2023.”
The next meeting of the JMMC 51st is scheduled for November 26.
The global oil market is moving on the right path towards balanced supply and demand, Kuwait’s Oil Minister Saad Al Barrak said on Wednesday.
“The world is required to increase investment in all types of energy sources, including oil, to ensure meeting the needs of growing demand, the recovery of the global economy, and energy security,” Barrak said.
He also praised the decision by Saudi Arabia and Russia to continue voluntary reduction and extending it until the end of this year, pointing to the positive impact on the balance and stability of the oil market.
