Saudi, Russian Production Cuts Unlikely To Move Near-Term Oil Price Needle

Saudi, Russian Production Cuts Unlikely To Move Near-Term Oil Price Needle

Oil storage tanks are seen from above in Carson, California, U. S. (Photo: Robyn Beck / AFP via Getty ... [+] Images) Global oil markets were greeted early on Monday (July 3, 2023) by Saudi Arabia announcing a rollover of its voluntary production cut of 1 million barrels per day (bpd) to the end of August. The cut initially offered by the Saudis unilaterally for July – at the last Organization of Petroleum Exporting Countries (OPEC) and Russia-led OPEC+ group meeting on June 4, 2023, and dubbed a "lollipop" for crude markets by the country's Energy Minister Prince Abdulaziz bin Salman – now looks set to last for much of the U. S. summer driving season. A statement issued by the Ministry of Energy, via the official Saudi News Agency noted: "This additional voluntary cut comes to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets." In near tandem with the Saudi move came an overture from Russia, as it announced a "voluntarily cut" as well of 500, 000 bpd for August via a reduction in cargoes designated for exports. Of course, quite like previous Russian promises of output