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Saudi Arabia will continue its voluntary cut of 1M barrels per day, which went into effect in July 2023 and was later extended until the end of December 2023, according to an official source from the Saudi Ministry of Energy. The cuts will result in production of approximately 9M barrels per day in December.
The decision will also be “reviewed next month to consider extending the cut, deepening the cut, or increasing production… and reinforces the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets.”
Following the statement, Russia also confirmed it would continue its additional voluntary supply cut of 300K bpd until the end of December.
The output reductions by the Saudis and Russians helped take West Texas Intermediate crude to $95 at the end of September, but prices have since cooled down and the Israel-Hamas war premium has evaporated. At the time of writing, WTI oil futures (CL1:COM) are up 1% to $81.33/bbl.
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