Saudi Production Cuts, Aramco OSP, and Urals Prices

Saudi, Russian, and Algerian Voluntary Cuts

Saudi Arabia, Russia, and Algeria announced today they were going to deepen their oil production cuts, triggering a rise in oil prices despite concerns over global economic activity.

The Saudi Press Agency (SPA) quoted a source from Saudi Arabia’s Ministry of Energy as saying that the Kingdom will extend its voluntary cut of 1 million barrels per day (MMB/D)—that went into effect in July 2023—for another month to include August. The cut could be extended at a later date.

“In effect, the Kingdom’s production for the month of August 2023 will be approximately 9 million barrels per day,” the official source said.

Meanwhile, Russia’s Deputy Prime Minister, Alexander Novak, said Moscow will “voluntarily reduce its oil supply by 500,000 barrels per day, by cutting its exports to global markets by that amount,” according to an official statement.

EOA’s Main Takeaway: