Saudi Arabia and Russia extend oil production cuts until March 2024

Shafaq News/ Saudi Arabia and Russia have jointly decided to extend the reduction in oil production until the end of March 2024, aiming to support stability in global crude prices.

The voluntary production cut, coordinated with some OPEC+ countries, will maintain the Kingdom's production at around nine million barrels per day until the first quarter of the next year. The gradual restoration of these additional reduction amounts will be contingent on market conditions. This extension supplements Saudi Arabia's voluntary reduction of 500,000 barrels per day, announced in April 2023, extending until the end of December 2024. Russia, too, has pledged to reinforce its voluntary reduction by 500,000 barrels per day, extending it until Q1 2024.

Both nations emphasized these measures to preserve stability and balance in the oil market. Saudi Arabia initiated a voluntary reduction in oil production by one million barrels per day in July 2023, building on a previous 500,000 barrels per day reduction announced in April. The move contributed to pushing Brent crude to around $100 per barrel.

The OPEC+ alliance anticipates a global oil supply deficit of 3.3 million barrels per day in Q4, supporting expectations of Brent crude surpassing $100 per barrel.