[1/2]The OPEC logo ahead of an informal meeting between members of the Organization of the Petroleum Exporting Countries (OPEC) in Algiers, Algeria, September 28, 2016. Portal/Ramzi Boudina//File Photo Acquires LICENSE RIGHTS
DUBAI, Nov 5 (Portal) – Top oil exporters Saudi Arabia and Russia confirmed on Sunday they will continue their additional voluntary oil production cuts through the end of the year as concerns about demand and economic growth continue to weigh on crude markets.
Both countries said their cuts would be reviewed next month to consider extending, deepening or increasing them.
Saudi Arabia confirmed it would continue its additional voluntary cut of 1 million barrels per day (bpd), equivalent to production of around 9 million bpd for December, an Energy Ministry source said in a statement.
“This additional voluntary cut is intended to reinforce the precautionary efforts of OPEC+ countries with the aim of supporting the stability and balance of oil markets,” the source was quoted as saying in the statement.
Following the Saudi statement, Moscow also announced that it would continue its additional voluntary supply cut of 300,000 bpd from its crude oil and petroleum products exports until the end of December.
OPEC+, which includes Organization of Petroleum Exporting Countries (OPEC) countries and leading allies including Russia, has cut production since last year in what it says is a preemptive measure to maintain market stability.
Oil prices hit a 2023 high of nearly $98 a barrel for Brent crude in September, although they have since fallen to about $85 a barrel on Friday despite support from the Middle East conflict.
Saudi Arabia, OPEC’s de facto leader, initially made the voluntary cut in July, as an addition to a broad supply-limit deal that some members of OPEC+ first agreed to in April.
The kingdom announced in September that it would extend its additional voluntary cut until the end of the year and review the decision monthly.
Analysts had widely expected the kingdom to confirm in December that it would extend its cut.
A June decision by OPEC+ limits supply until 2024.
The alliance’s next meeting is scheduled for November 26th in Vienna.
Reporting by Omar Abdel-Razek and Maha El Dahan; Edited by Alexander Smith, Sharon Singleton and David Evans
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