Saudi Arabia and Russia suddenly have new moves on oil production, what is the purpose?

On July 3, Saudi Arabia announced an extension of its decision to voluntarily reduce oil production by 1 million barrels per day until August 2023. Meanwhile, Russia also continued to reduce its oil exports.

Saudi Arabia continues to reduce oil production. (Source: Bicmagazine)

These are the latest moves by countries belonging to the Organization of the Petroleum Exporting Countries (OPEC) and its partners (OPEC+) to stabilize the "black gold" market.

Specifically, Saudi Arabia's oil production in July and August will be 9 million barrels/day.

The announcement by Prince Abdulaziz bin Salman, made it clear that the cuts could continue.

On the same day, Russian Deputy Prime Minister Alexander Novak said that the country will voluntarily cut oil exports by 500,000 barrels per day in August.

In March 2023, Moscow also decided to voluntarily reduce oil production by 500,000 barrels per day compared to the average level of February 2023.

* Asian refiners expect Saudi Arabia to cut crude oil supply prices to the region in August 2023, a Reuters survey showed, even as the top oil exporter pledged deeper production cuts in July 2023 as part of a broader OPEC and OPEC+ deal.

In June 2023, Saudi Arabia unexpectedly raised prices for cargoes delivered in July 2023, affecting the profits of Asian refiners.

To support falling global prices due to rising interest rates and recession fears, Saudi Arabia has volunteered to cut output by 1 million barrels per day in July 2023 based on a broader OPEC+ deal to limit supply in 2024.

State oil giant Saudi Aramco is expected to cut its official selling price (OSP) for Arab Light crude in August 2023 by about 50 cents a barrel from the previous month.

Source: https://baoquocte.vn/saudi-arabia-nga-bat-ngo-co-dong-thai-moi-ve-san-luong-dau-muc-dich-la-gi-233270.html