Saudi Arabia extended its one million barrel per day voluntary crude oil production cut until the end of the year 2023

Saudi Arabia extended its voluntary crude oil output reduction of one million barrels per day (bpd) until the end of 2023 on Wednesday. According to an official source at the Ministry of Energy, the Kingdom will maintain its voluntary oil output cut of one million bpd for the month of November and until the end of the year, and that the decision would be reviewed again next month.

The Kingdom's output for November and December will be about 9 million bpd, according to a statement reported by the Saudi Press Agency. "This voluntary cut decision will be reviewed next month to consider deepening the cut or increasing production," stated the statement. The additional voluntary cut was originally adopted in July and has subsequently been extended on a monthly basis. The reduction adds to the 1.66 million barrels per day of voluntary crude output cuts implemented by several OPEC members through the end of 2024.

According to the source, this decrease is in addition to the voluntary reduction announced by the Kingdom in April 2023 and which will last through the end of December 2024. This further voluntary decrease is intended to bolster OPEC+ nations' precautionary steps to maintain the stability and balance of oil markets, as per the ministry source.