Convergence of views between Saudi Arabia and Russia regarding OPEC Plus production rates

An official source at the Ministry of Energy announced that the Kingdom will extend the voluntary reduction of one million barrels per day, which began in July 2023 and was extended to include the months of August and September, for another three months. That is, until the end of December 2023, and thus the Kingdom’s production in the coming months of October, November and December will be approximately 9 million barrels per day.

The source stated that the decision on this reduction will be reviewed on a monthly basis, to consider whether to increase the reduction or increase production

He also explained that this reduction is in addition to the voluntary reduction; which was previously announced by the Kingdom in April 2023, extending until the end of December 2024.

The source confirmed that this additional voluntary reduction comes to strengthen the precautionary efforts made by the OPEC Plus countries. With the aim of supporting the stability and balance of oil markets.

On the other hand, Russian Deputy Prime Minister Alexander Novak announced the extension of the additional voluntary reduction in Russia’s supplies, amounting to 300,000 barrels per day, until the end of December 2023.

He confirmed, according to a statement published on the official website of the Russian government, that the review of the voluntary reduction decision will take place on a monthly basis to consider increasing the reduction or increasing production, depending on the conditions in global markets, indicating that this reduction is in addition to the voluntary reduction that Russia announced in the month of April of 2023; which extends until the end of December 2024.