Saudi Arabia continues to cut oil production
Plant of the Saudi Arabian oil company Aramco
© AFP
With oil prices falling, Saudi Arabia announced a further cut in its oil production on Sunday. Production will be reduced by a million barrels a day in July and this could “be extended,” said Saudi Energy Minister Abdelasis bin Salman after negotiations between the 13 OPEC countries and ten partner countries in Vienna.
Another result of the meeting was announced by the Russian Deputy Prime Minister Alexander Novak: The throttling of 1.6 million barrels per day decided by nine producing countries, including Saudi Arabia and Russia, which has been in effect since May, will be continued until the end of 2024.
Representatives of the states of the OPEC+ group, which consists of the 13 OPEC countries led by Saudi Arabia and ten partner countries led by Russia, were gathered in Vienna. Together, the 23 countries represent 60 percent of the world’s oil production. The United Arab Emirates were able to increase their production in the coming year despite relatively low oil prices.
The North Sea variety Brent is currently trading at around 76 dollars a barrel, the US variety WTI at around 71 dollars. The price is about half what it was in March 2022, when the price rose to almost $140 immediately after the start of the Ukraine war. The Opec+ group decided last October to cut oil production significantly.
2023-06-04 21:00:55
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