Saudi Arabia will extend its voluntary oil production cut of one million barrels per day (bpd) until the end of the year, the kingdom’s energy ministry announced yesterday.
The ministry said in a statement that oil production from October to December will be approximately nine million (bpd).
According to the ministry, the decision, which aims to “support market stability”, will be reviewed monthly to determine whether to deepen the cut or to increase production.
In tandem with the Saudi announcement, Russia, the world’s second largest oil exporter, has also extended its voluntary decision to reduce its oil exports by 300,000 bpd to the end of this year, Deputy Prime Minister Alexander Novak said in a statement yesterday.
Benchmark Brent crude traded above $90 a barrel after the announcement, a price unseen in the market since November.
Oil prices rose in July to over $80 a barrel. Analysts say the kingdom needs to maintain oil prices at around $80 a barrel to balance its budget.