Saudi Arabia and Russia, two of the world’s largest oil exporters, recently announced cuts in their August oil supply. This decision aims to support markets worried about the slowdown in developed economies. As demand for oil in the United States increases dramatically during the summer driving season, these cuts will have a significant impact on the international oil market. Saudi Arabia has decided to extend for another month its production cut of one million barrels per day, which was put in place in May and was originally due to end at the end of July.
According to the official SPA news agency, the kingdom’s production for the month of August will be around 9 million barrels per day, down from the 9.96 million barrels per day produced at the end of June. Shortly after this announcement, the Russian Deputy Prime Minister, Alexander Novak, also said that Russia would cut its oil exports by 500,000 barrels a day in August. This voluntary reduction in Russian supply is also aimed at maintaining balance in the world oil market, although the spokeswoman for Novak refused to say whether Russian production would also decline in the same proportions.
At the end of May, Russia was producing 9.11 million barrels per day. These announcements come at a crucial time, when demand for oil in the United States is booming during the summer period. The “driving season” is a time when many Americans go on vacation and travel long distances by car, which leads to increased fuel consumption. Production cutsSaudi Arabia and Russia will therefore have a significant impact on oil supply and could potentially affect US pump prices.
However, it should be noted that these supply cuts also have geopolitical implications. Saudi Arabia and Russia are key players in OPEC+ (Organization of Petroleum Exporting Countries and Partners), an organization that regulates oil production and prices on the global market. The decisions taken by these two countries have a major impact on the stability of the oil market and can influence international relations in this area.
2023-07-04 08:51:08
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