Saudi announces fresh output cut to boost oil price

Saudi announces fresh output cut to boost oil price

VIENNA: Riyadh on Sunday announced it would slash output further by one million barrels per day in a bid to prop up prices, despite fears of a recession. The announcement came following a meeting of the 13-member Organization of the Petroleum Exporting Countries (OPEC) headed by Saudi Arabia and its 10 partners, led by Russia. The cut is for July but “can be extended”, Saudi Energy Minister Prince Abdulaziz bin Salman told reporters. It is a “voluntary” cut announced after the in-person hours-long OPEC+ meeting at the group’s headquarters in Vienna, which saw some tough negotiations.

Analysts had largely expected OPEC+ producers to maintain their current policy, but signs emerged this weekend that the 23 countries may make deeper cuts. An output cut of one million barrels per day (bpd) was being discussed, according to the source close to the talks. In April, several OPEC+ members agreed to cut production voluntarily by more than one million bpd — a surprise move that briefly buttressed prices but failed to bring about lasting recovery. Bloomberg news agency reported a fight with the grouping’s African members threatened to derail the gathering.

While the United Arab Emirates was pushing for a change to the way its