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(OPEC +) renews its commitment to supporting the stability of oil markets and praises Saudi Arabia and Russia

04-08-2023

Today, Friday, the Joint Ministerial (Market Monitoring) Committee emanating from the (OPEC +) coalition renewed the commitment of the coalition countries to support the stability and balance of oil markets, while praising Saudi Arabia’s extension of the voluntary production cut for an additional month, and Russia’s announcement of a voluntary cut in its oil exports at a rate of 300 thousand barrels per day. A press release issued by the OPEC headquarters stated that the committee reviewed, in its 49th meeting, via video, crude oil production data for the past May and June, and noted the general conformity with the Declaration of Cooperation for the participating and non-member countries. She indicated that the frequency of its monthly meetings was modified so that it became every two months, with the authority to hold additional meetings or request a ministerial meeting of the countries of the (OPEC +) coalition, as agreed upon at the 33rd ministerial meeting of the alliance, which was held in October 2022. And she affirmed the continuation of closely evaluating and monitoring the conditions of the oil market, pointing to the readiness of the coalition countries to address market developments and the readiness to take additional measures at any time based on the strong cohesion of OPEC countries and oil-producing countries outside the organization. The committee also expressed its full appreciation and support for Saudi Arabia's efforts aimed at supporting the stability of the oil market, reiterating its appreciation for the additional reduction in production taken by Saudi Arabia, amounting to one million barrels per day, and its extension for the month of September. The committee also commended Russia for an additional voluntary cut in exports by 300,000 barrels per day for the month of September. The next meeting of the joint ministerial (market monitoring) committee of the (OPEC +) alliance is scheduled to be held on the fourth of next October. Yesterday, Thursday, Saudi Arabia announced the extension of the voluntary oil production cut of one million barrels per day for an additional month, "with the possibility of extending or extending and increasing this cut." The Saudi Ministry of Energy said that the Kingdom will extend the voluntary cut, which began in July, for another month to include the month of September, adding that, thus, the Kingdom’s production in September will be approximately nine million barrels per day. She explained that this reduction is in addition to the voluntary reduction previously announced by the Kingdom in April 2023 and extending until the end of December 2024. And she stressed that this additional voluntary reduction comes to reinforce the precautionary efforts made by the (OPEC +) countries, with the aim of supporting the stability and balance of oil markets. Russia also announced yesterday a voluntary reduction in its oil exports by 300,000 barrels per day in an effort to ensure balance in the global oil markets. Russian Deputy Prime Minister Alexander Novak said that his country "has decided to reduce its oil exports by 300,000 barrels per day as part of efforts to ensure balance in global oil markets," noting that this measure comes within the framework of the voluntary decision to reduce oil exports in September.