Saudi Cabinet backs OPEC+ agreement to stabilize oil markets

Saudi Cabinet backs OPEC+ agreement to stabilize oil markets

RIYADH: Saudi ministers backed this week’s oil agreement between exporting countries and supported the Kingdom’s voluntary production cut.

Organization of the Petroleum Exporting Countries and allies such as Russia, known as OPEC+, announced on Sunday to limit oil output in 2024.

Saudi Arabia said it will extend its voluntary cut of 500,000 bpd until the end of December 2024, in coordination with some countries participating in the OPEC+ agreement.

The Saudi energy ministry also announced an additional voluntary oil output cut of 1 million bpd for July, which could be extended further.

This would mean that the Kingdom’s production becomes 9 million bpd, and its total voluntary cut will be 1.5 million bpd in July.

Defending the decisions made by the oil producers’ alliance, Saudi Energy Minister Prince Abdulaziz bin Salman stressed the need to “trust OPEC+” which he described as “the most effective international organization” working to restore market stability.

“It was just our sensibility, if you will call it, that the environment was not sufficiently allowing confidence to be there. So taking a precautionary measure tends to put you on the safe side. And it is part of the typical rhythm that we have installed in OPEC, which is being proactive, being preemptive,” Prince