Saudi Arabia will extend oil production cuts until the end of 2023.

Saudi Arabia will extend the oil production cut of one million barrels per day until the end of the year, information was released today by sources from the Saudi Ministry of Energy.

The voluntary production cut of one million barrels of oil per day, which began to be implemented in July this year, will now be extended to around nine million barrels per day in November and December, according to the agency Saudi official news (SPA).

The additional voluntary reduction reinforces the precautionary efforts made by OPEC+ countries (OPEC alliance plus ten external allies) with the aim of supporting the stability and balance of oil markets.

This extension of the production limit, which comes in addition to the production cuts that the Arab country has committed to with the Organization of Petroleum Exporting Countries (OPEC), is expected to further increase the price of oil.

Therefore, the world's largest crude exporter will review the decision on the reduction next month to see whether to reduce or produce more. The one million barrel cut joins another unilateral voluntary cut by Saudi Arabia implemented last April and which will be in effect until the end of December 2024.

Saudi Arabia represents around 17 percent of the world's oil reserves, and has reduced production on several occasions under the OPEC+ policy, which the Arab kingdom leads with Russia.

In addition to Saudi Arabia's additional cut and Russia's commitment to also reduce exports between July and September, the OPEC+ alliance maintains production reductions in force totaling 3.6 million barrels per day, around 3.6 percent. of world oil production.

Whereas, OPEC oil production fell three percent in July to 27,310 million barrels per day, down 836,000 barrels per day seen in June, according to estimates published by the Vienna-based oil organization.

Source: Lusa