Saudi Arabia to Extend OPEC+ Voluntary Cut and Reduce Oil Output in July

The Kingdom of Saudi Arabia has announced that it will continue its voluntary reduction of 500,000 barrels per day (bpd) until the end of December 2024. This decision was made in coordination with other countries participating in the OPEC+ agreement. The agreement to reduce production levels was made during the OPEC+ meeting held on Sunday. Additionally, the Saudi Arabian energy ministry has announced an extra voluntary oil output cut of 1 million bpd for July, which may be extended further. This means that the Kingdom’s production will be reduced to 9 million bpd, resulting in a total voluntary cut of 1.5 million bpd in July. The ministry stated that this additional voluntary cut is intended to support the stability and balance of oil markets, in line with the precautionary efforts made by OPEC+ countries. The OPEC+ member countries have also agreed on a new output target of 40.46 million bpd from 2024, according to a statement issued by the group.