Riyadh has announced a further reduction in oil output by one million barrels per day in an effort to stabilize prices, despite concerns about a potential recession. Saudi Energy Minister Prince Abdulaziz bin Salman stated that the output cut for July is “voluntary” and could be extended.
Riyadh on Sunday announced it would slash output further by one million barrels per day in a bid to prop up prices, despite fears of a recession.
The announcement came following a meeting of the 13-member Organization of the Petroleum Exporting Countries (OPEC) headed by Saudi Arabia and its 10 partners, led by Russia.
The cut is for July but “can be extended”, Saudi Energy Minister Prince Abdulaziz bin Salman told reporters.
It is a “voluntary” cut announced after the in-person hours-long OPEC+ meeting at the group’s headquarters in Vienna, which saw some tough negotiations.
Analysts had largely expected OPEC+ producers to maintain their current policy, but signs emerged this weekend that the 23 countries may make deeper cuts.
An output cut of one million barrels per day (bpd) was being discussed, according to the source close to the talks.
In April, several OPEC+ members agreed to cut production voluntarily by more than one million bpd — a surprise move that briefly buttressed prices but failed to bring about lasting recovery.
Marie de La Roche Saint-André, with AFP
