Saudi Arabia and Russia to Continue Voluntary Oil Production Cuts

Saudi Arabia and Russia announced today, Wednesday, that they will continue voluntary oil production cuts until the end of the year, as tight supply and rising demand support crude prices. The Saudi and Russian announcements come just hours before a meeting of the OPEC+ Joint Ministerial Monitoring Committee, which includes major oil producers, scheduled for later today via the internet. The committee may call for a full OPEC+ meeting if deemed necessary, but sources told Reuters that changes to the current oil production policy are unlikely. Saudi Arabia, which effectively leads OPEC, stated it would continue its voluntary production cuts by one million barrels per day in November and through the end of the year. A statement from the Ministry of Energy published by the Saudi Press Agency indicated that the kingdom's production in November and December would be approximately nine million barrels per day. The agency quoted a ministry source saying, "The decision regarding this reduction will be reviewed next month to consider either increasing the cut or raising production." This reduction by Saudi Arabia and Russia adds to previous restrictions announced since late 2022. The next full OPEC+ meeting is scheduled for November.