- According to an official source quoted by the Saudi Press Agency, Saudi Arabia has extended its additional voluntary oil production cut of one million barrels per day for the second time. The extension will be in effect until the end of September, with the possibility of further extensions. The Kingdom's production rate for September will remain at 9 million barrels per day.
- Saudi Arabia had initially implemented this voluntary cut in July, and it was extended until the end of August. These voluntary cuts are in addition to another cut of 500,000 barrels per day made within the OPEC+ coalition countries, which started in May and will continue until the end of the next year. The positive impact of the supply cuts is evident, as the price of Brent crude rose by over 12% in July.
Why it matters
Earlier, a Bloomberg survey anticipated that Saudi Arabia would extend its voluntary production cut of approximately one million barrels for September, as indicated by 15 out of 22 traders and analysts. In response to the news of the extension, oil prices responded positively, causing Brent crude contracts to regain the $84 per barrel level it had previously lost. During yesterday's trading, US crude also rebounded, surpassing $80 per barrel once again.
