2023-09-05 17:41:31
Russia will continue to cut oil exports and Saudi Arabia production until the end of 2023, announcements that sent crude prices to their highest level in ten months on Tuesday, according to AFP.
Oil rigPhoto: Dan Bannister / ImageSource / Profimedia
The two countries thus maintain their strategy of supporting oil prices.
Saudi Arabia will continue to cut production by one million barrels per day (bpd) for October-December 2023, its energy ministry said in a statement.
The cuts by the world’s top crude exporter were announced in June following an Opec+ meeting and first came into effect in July.
OPEC+ brings together members of the Organization of the Petroleum Producing Countries (OPEC), led by Saudi Arabia, and allied states, including Russia.
“The kingdom’s production for the months of October, November and December will be approximately nine million bpd,” the Saudi ministry said.
According to the ministry, this strategy will be “reviewed monthly with a view to further reducing or increasing production.”
This policy is intended to “support the stability and balance of oil markets,” he added.
Riyadh had announced an extension to September, warning that it might be “tightened” beyond that deadline.
Precautionary measures,” according to Moscow
On Tuesday, Russia also announced its decision to maintain a 300,000 bpd cut in its oil exports until the end of the year.
This measure “is intended to strengthen the precautionary measures taken by OPEC countries to maintain the stability and balance of oil markets,” Russian Deputy Prime Minister Alexander Novak, in charge of energy, said on the Russian government’s Telegram account.
Following these announcements, the price of Brent crude exceeded the symbolic threshold of $90 per barrel for the first time since November 2022.
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