Saudi Arabia to extend 1 mln bpd voluntary cut until August

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Saudi Arabia will extend its voluntary output cut of one million barrels per day (bpd) for another month through August.

The voluntary cut could be extended beyond August. The Kingdom’s oil production for August will reach nearly nine million bpd, the state-run SPA reported, quoting an official Ministry of Energy source.

The decision to cut voluntary output by one million bpd was effective from July.

August’s cut comes after the Kingdom’s announcement in April that it will extend its voluntary output cut until December 31, 2024, the source added.

The additional voluntary cut strengthens OPEC+ precautionary measures to support the oil market balance.

In June, OPEC and its allies agreed to set a new production target at 40.46 million bpd from January-December 2024, Argaam earlier reported.

Accordingly, OPEC+ agreed to slash its production target for 2024 by around 1.4 million barrels per day (bpd) compared to current production targets.

Saudi Arabia said it will extend its voluntary output cut of 500,000 bpd.