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Saudi Arabia and other OPEC+ members are trying to stem the recent drop in oil prices.
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Saudi Arabia said it would Slush oil output As part of government efforts, production will increase by another 1 million barrels per day for at least a month starting in July. OPEC+ Major Producing Country Group Strengthen oil price.
“Kingdom [of Saudi Arabia] The Saudi state news agency said on Sunday that it will cut another 1 million barrels per day of crude oil production voluntarily from July, with a possible extension for a month.
Saudi Arabia’s statement came after a meeting of allies known as OPEC+ in Vienna on Sunday. Organizations of oil exporting countries (OPEC), Russia and other small producers.
At the meeting, Riyadh also agreed to extend the 500,000 bpd cut announced in April until 2024. Reuters reported that Moscow would extend its own production cuts, citing Russian Deputy Prime Minister Alexander Novak. Cut production by 500,000 barrels per day Until the end of next year.
Other OPEC+ members will continue to cut output until the end of next year, Reuters reports.
“The Saudi energy ministry explained that the additional voluntary cuts in Saudi production are to strengthen the preventative efforts being made by OPEC+ countries to help stabilize and balance the oil market,” the Saudi Press Agency added.
In early April, OPEC+, which produces about 40% of the world’s oil, unexpectedly announced that its members: cut the output In addition to the 2 million barrels per day reduction announced in October, it will cut production by 1.66 million barrels per day.
Oil prices surged after a surprise production cut in April, peaking late in the month before reversing in the weeks that followed. Global benchmark Brent crude rose above $76 a barrel on Friday, boosted by speculation that the Federal Reserve may postpone a rate hike this month. However, it is still down more than 11% since the beginning of the year. And it’s trading at the same level it was before OPEC+’s April move.
Analysts had expected the producer group to postpone announcing further supply cuts on Sunday, given diverging interests. Between Russia – Whose Oil Exports are subject to price restrictions imposed by the G7 over the war in Ukraine. Saudi Arabia also needs to raise oil prices above $80 a barrel to balance the budget.
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Saudi Energy Minister Prince Abdulaziz bin Salman attends a meeting in Vienna.
But the Saudi energy minister last month fueled speculation of another rate cut by saying it was “paining” short sellers, or traders who bet on lower prices.
“You don’t have to show your cards. I’m not a poker player…but I’ll let them know.”: Please be careful,” Prince Abdulaziz bin Salman said at a conference in Qatar hosted by Bloomberg.
Crude oil prices are affected by: overall bleak outlook for the US and global economy. There is evidence that growth in the US and China, the world’s No. 1 and No. 2 economies, has stagnated.
Germany, Europe’s largest economy, sees little prospect of an easy exit from its economy as China slows economic downturn China is our most important trading partner.
The weekend meeting was as follows. Restrict media access.
Reuters reported Wednesday that its text journalists who cover those meetings and are registered as members of the press with OPEC have not received invitations to cover the meetings. OPEC also did not give Bloomberg permission to cover the meeting, and two Wall Street Journal reporters who regularly cover OPEC were not invited.