Saudi Arabia plans to extend oil cut by 1 million barrels per day until the end of the year

(September 5, 2023) — Saudi Arabia announced on Tuesday that it will extend its voluntary oil production cut of 1 million barrels per day for another three months, until the end of December 2023.

The decision was made by the kingdom’s energy minister, Prince Abdulaziz bin Salman, and was reportedly made in consultation with other members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies.

The cut is intended to help prop up oil prices, which have been under pressure in recent months due to concerns about global economic growth and rising inflation.

In a statement, the Saudi energy ministry said that the decision to extend the cut was “based on the current market conditions and the need to ensure the stability of the global oil market.”

The ministry also said that it would continue to monitor the market closely and would be prepared to take further action if necessary.

The extension of the oil cut is a positive development for oil producers, but it is unclear how much it will help to boost prices. The global economy is still facing a number of challenges, and there is no guarantee that demand for oil will recover in the near future.

However, the cut does send a signal to the market that OPEC and its allies are committed to supporting prices. This could help to stabilize the market and prevent a further decline in prices.

The news of the oil cut was met with mixed reactions from analysts. Some said that it was a necessary move to support prices, while others argued that it would do little to address the underlying problems in the market.

Only time will tell how effective the cut will be. However, it is clear that Saudi Arabia is willing to take steps to protect its interests in the oil market.