In an announcement, Saudi Arabia revealed its decision to extend the voluntary cut in oil production. The country also stated that it will assess its oil production policy in November, with the aim of deciding whether to implement an additional voluntary cut or increase production. Meanwhile, the OPEC+ alliance, during the meeting of its Joint Ministerial Monitoring Committee, decided to maintain the current oil production policy. The committee reiterated its commitment to reducing production until the end of 2024.
Read more: OPEC+ cuts to tighten oil market in Q4 2023: IEA
The Joint Ministerial Monitoring Committee, as stated in a press release, will maintain a close evaluation of market conditions. The statement emphasized the readiness of the Group States to take required measures in response to market developments, demonstrating their proactive approach.
The statement further mentioned that the members expressed their profound appreciation and unwavering support for Saudi’s endeavors in ensuring the stability of the oil market. They also acknowledged and endorsed the Kingdom’s decision to extend its additional voluntary reduction of 1 million barrels per day (bpd) until the end of 2023.
During the morning, Saudi Arabia and Russia made a joint announcement, expressing their commitment to prolonging voluntary cuts in oil production until the end of the year.
Saudi statement
According to a statement from the Saudi Ministry of Energy, the Kingdom has declared its intention to maintain the voluntary reduction of 1 million bpd in oil production throughout November until the year’s end. Published by the Saudi Press Agency (SPA), the statement further mentioned that the Kingdom’s projected production for November and December will be around 9 million bpd.
The agency quoted a source from the ministry stating that the decision regarding this reduction will be reassessed next month, taking into account the possibility of implementing additional cuts or increasing production.
Evaluation process
For his part, Russian Deputy Prime Minister Alexander Novak stated that Russia would evaluate next month whether to expand its voluntary cut in oil production or increase production. However, he clarified that Russia would maintain its current export reduction policy independently until the end of the year.
Russia has taken measures to reduce oil supplies on two separate occasions. In April, the country approved a production cut of 500,000 bpd until the end of 2024. Furthermore, in August, Russia announced a reduction in exports by 300,000 bpd until the end of the current year.
Novak reiterated the previous announcement, confirming Russia’s commitment to maintain the voluntary export cut of 300,000 bpd until the conclusion of December.
Market analysis
He stated that in the following month, there would be a market analysis conducted to assess the possibility of reducing or increasing oil production. Moreovr, he mentioned that this analysis would be separate from the voluntary cut that Russia had previously announced in April 2023. Also, he clarified that the voluntary cut would continue to be in effect until the conclusion of December 2024.
Novak emphasized that Russia’s additional voluntary cut is aimed at providing support to the joint efforts of OPEC Plus countries in maintaining stability and balance within the oil markets.
For more news on energy, click here.
