Saudi Arabia will voluntarily cut production by 1 million barrels a day in July, alongside an agreement by the Organization of the Petroleum Exporting Countries and its allies to stick to production targets on Sunday.
Describing the voluntary cut as a “Saudi lollipop,” the country’s energy minister, Prince Abdulaziz bin Salman, said the July reduction could be extended if needed.
OPEC+ — the group made up of OPEC and its Russia-led allies — concluded a contentious meeting in Vienna, with members agreeing to extend previously agreed production cuts through the end of 2024. OPEC+ agreed last October to cut output by 2 million barrels a day and followed that in April with the surprise announcement of 1.6 million barrels a day in additional cuts.
Oil prices have fallen sharply since the October reduction amid worries over the global economic outlook, with Brent crude
BRN00,
the global benchmark, down more than 20%. The surprise April cuts initially boosted prices, but gains were soon erased.
