USOI - Saudi Arabia extends voluntary 1M bbl/day oil production cut through September

2023-08-03 09:51:57 ET

Crude oil edges higher on news that Saudi Arabia has extended its unilateral 1M bbl/day oil production cut by another month, and said it could be prolonged further or even deepened, according to the Saudi Press Agency.

Front-month Nymex September crude ( CL1:COM ) +0.9% to $80.22/bbl, and October Brent crude ( CO1:COM ) +0.6% to $83.69/bbl.

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"In effect, the Kingdom's production for the month of September 2023 will be ~9M bbl/day," the SPR reportedly said, citing a source from the Saudi energy ministry.

The 1M bbl/day cut, which was also implemented in July and August, adds to 1.66M bbl/day of other voluntary production declines that some OPEC members are putting in place until the end of 2024.

A panel from OPEC+, which includes OPEC and allies led by Russia, is scheduled to meet on Friday, but the cartel's Joint Ministerial Monitoring Committee is seen as unlikely to tweak oil policy during the meeting.

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