Russia and Saudi Arabia to maintain voluntary oil supply cuts until at least end of 2023

Russian Oil Rig

Banca March: Russia and Saudi Arabia have confirmed that they will maintain voluntary oil supply cuts until the end of 2023, reviewing in December whether to prolong, deepen or end the supply cap. This supply cap began in the spring of 2023, when Russia responded to sanctions imposed for its invasion of Ukraine. Other OPEC+ members, including Saudi Arabia, opted to join voluntary cuts totalling 1.66 million barrels per day until the end of 2024. The organisation’s argument was to “support market stability”. Both Saudi Arabia and Russia decided to add additional cuts. Saudi Arabia decided to cut production by 1 million barrels per day from July, bringing December production to an estimated 9 million barrels per day. Moscow announced a 300,000 bpd reduction in foreign supplies.

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