In a display of strong teamwork, Saudi Energy Minister Prince Abdulaziz bin Salman has lauded the recent move by Saudi Arabia and Russia to extend oil production cuts. The Kingdom announced on Monday that it would continue its voluntary reduction of one million barrels per day in crude output for another month, encompassing the month of August. Simultaneously, Russia declared a decrease in exports by 500,000 barrels per day for the same period, resulting in a total reduction of 1.5% of global supply.
During the OPEC+ International Seminar in Vienna, Prince Abdulaziz emphasized the deep cooperation between Saudi Arabia and Russia as part of the OPEC+ alliance. He expressed the commitment of both countries to support the oil market, asserting that they would do “whatever necessary” to achieve this objective. The Saudi minister also emphasized the significance of Russia’s voluntary oil production cut, highlighting that it affected exports and was not imposed by any external force.
To address any skepticism surrounding the Saudi-Russian alliance, Prince Abdulaziz stressed the collaborative effort undertaken with colleagues in Russia, which involved the review of seven independent entities to validate Russia’s numbers. This thorough evaluation further demonstrated Russia’s commitment and the voluntary nature of its production cut.
The recent extension of crude oil output cuts adds to the voluntary reductions of 1.66 million barrels per day that some OPEC+ members had originally implemented in April. These reductions were later extended until the end of 2024. OPEC+, which comprises the Organization of the Petroleum Exporting Countries and its allies, including Russia, accounts for approximately 40% of global crude production. Since November 2022, this group has been actively reducing oil output.
The collaboration between Saudi Arabia and Russia in implementing production cuts is a testament to their dedication to stabilizing oil markets. Their united effort showcases the willingness of these influential oil-exporting nations to take necessary measures to support global oil prices. As the world continues to navigate the challenges posed by the COVID-19 pandemic and a fluctuating energy landscape, such cooperation is crucial for achieving stability and ensuring the steady growth of the oil industry.
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