Saudi Arabia and Russia, two key OPEC+ partners, have confirmed that they will continue their oil supply cuts in November. This decision comes despite the recent rally in crude oil prices. Saudi Arabia stated that it will reduce its crude oil production by an additional 1 million barrels per day (bpd) in November and December. Similarly, Russia announced that it will continue to reduce oil exports by 300,000 bpd until the end of the year.
These announcements, made almost simultaneously, were expected by the market. However, some analysts have hinted that Saudi Arabia may begin easing the cuts sooner than anticipated to avoid damaging demand with excessively high prices.
The Kingdom’s Ministry of Energy clarified that Saudi Arabia will maintain the extra 1 million bpd cut until the end of the year, resulting in an approximate production of 9 million bpd. The decision will be reviewed next month, giving consideration to whether the cuts should be deepened or production increased.
Likewise, Russia’s Deputy Prime Minister, Alexander Novak, confirmed that the country will continue with the 300,000-bpd cut in oil exports until the end of the year. A review will also be conducted next month based on market analysis.
Both countries emphasized that the ongoing oil supply cuts are designed to maintain stability and balance in the oil markets. These announcements were made shortly before the Joint Ministerial Monitoring Committee (JMMC) of OPEC+ met to discuss recent developments in the oil market. It was widely expected that no changes would be made to supply decisions during the meeting.
(Source: Tsvetana Paraskova | Oilprice.com)
