Saudi Arabia to continue voluntary oil production cuts

Saudi Arabia will continue its voluntary cut in oil production of one million barrels per day through the end of this year. The country’s energy ministry announced this today, according to Reuters. It added that production would amount to around nine million barrels per day in November and December.

Saudi Arabia, a key member of the Organization of the Petroleum Exporting Countries (OPEC), began its voluntary production cut in July. The cut supplements a broader agreement between the cartel and its allies, including Russia, to restrict supplies to the market in an effort to support oil prices.

Russia has introduced two separate voluntary supply restrictions. In April, it decided to cut production by half a million barrels per day through the end of the year, and in August it said it would curb exports by 300.000 barrels per day through year-end, Reuters reports.

Russian Deputy Prime Minister Alexander Novak confirmed today that the export restrictions would remain in place through the end of the year. He added, however, that Moscow would assess next month whether to adjust the production restrictions. „Next month, a market analysis will be conducted to inform a decision on whether to deepen the production cuts or increase production,“ he said.