Saudi Arabia and Russia ratify their commitment to reduce oil supply until the end of the year

MADRID, 6 Nov.

Saudi Arabia and Russia ratify their commitment to reduce oil supply until the end of the year


Russia and Saudi Arabia have confirmed that they will maintain additional cuts in their oil supply until the end of 2023, as reported by the governments of both countries, noting that in December they will analyze the need to deepen the cuts or increase supply.

The price of a barrel of crude oil in its Brent variety, the reference for Europe, rose 0.94% this Monday, to $85.69, while West Texas Intermediate (WTI) rose almost 1% and was trading at $81.31.

As confirmed this Sunday by Russian Deputy Prime Minister Alexander Novak, the country will continue until the end of December 2023 with the additional voluntary reduction of 300,000 barrels per day in the supply of oil and derived products to world markets.

In this sense, he indicated that the country will carry out a market analysis in December to make a decision on whether to deepen the adjustment or increase oil production."

This cut in Russian crude oil exports is an additional measure to the voluntary reduction in production by half a million barrels per day announced last April, which will extend until the end of 2024.

Russia first carried out an additional voluntary reduction in oil supply in August, although then the extra cut was 500,000 barrels per day, although in September it decided to ease it to the current 300,000 barrels and extend the measure until the end of 2023.

For its part, according to the official Saudi agency SPA, sources from the Government of the Ministry of Energy of Saudi Arabia confirmed that the Kingdom will continue with its voluntary cut of one million barrels per day, which came into effect in July 2023 and was later extended. until the end of December 2023.

Thus, Saudi Arabia's oil production in the month of December will be around 9 million barrels per day.

In this sense, as in the case of Russia, the Saudi Government plans to review its decision next month to consider whether it is necessary to deepen the cut or increase production.

The sources consulted indicated that this cut is in addition to the voluntary adjustment previously announced in April 2023, which extends until the end of December 2024, adding that "it comes to reinforce the precautionary efforts made by OPEC countries with the aim of supporting the stability and balance of the oil markets".