Saudi Arabia announced on Monday it would extend its voluntary crude output cut of one million barrels per day for another month to include August, while Russia simultaneously announced a 500,000 barrel-per-day decline in exports next month. The cuts will amount to 1.5% of global supply.
“It is quite telling seeing us on Monday coming out with not only our [oil production cut] extension… but also with validation from the Russian side,” he told a meeting of oil industry CEOs with ministers at the OPEC+ International Seminar in Vienna.
Prince Abdulaziz said there was deep cooperation between Saudi Arabia and Russia as part of the OPEC+ alliance, and pledged to do “whatever necessary” to support the oil market.
“In the last move this week, yes, we are all continuing with our voluntary cut, but again, part of what we have had done with our colleagues from Russia was also to mitigate the cynical side of spectators about what was going on with Saudi Arabia and Russia,” he continued.
The Saudi energy minister hailed Russia’s oil production cut, describing it as meaningful as it affects exports, and noted that the move had been voluntary, not imposed.
“We worked with seven independent entities to review Russia’s numbers, and they stood by the review. It is a voluntary cut; it was not mandatory, which shows their commitment,” the Saudi minister said.
The latest round of crude oil output cuts comes on top of voluntary reductions of 1.66 million barrels per day that some OPEC+ members had first declared in April, and then agreed to extend until the end of 2024.
OPEC+, a group comprising the Organization of the Petroleum Exporting Countries and allies including Russia that pumps around 40% of the world’s crude, has been cutting oil output since November 2022.