Riyadh: The Kingdom of Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said the decision to cut oil production is a precautionary one aimed at ensuring market stability.
“We will continue to hedge as long as we do not see clarity and stability in the market, and our mission is to give the oil market clear data for stability,” Prince Abdulaziz said during a press conference after the end of the Sunday’s OPEC + meeting.
On Sunday, Saudi Arabia said it would start cutting oil production by one million barrels per day in July.
According to the decision, Saudi Arabia’s production will drop to 9 million barrels per day in July from around 10 million barrels per day in May.
The decision came from the OPEC + meeting in Vienna, but the additional cuts announced by Saudi Arabia are unilateral, the Saudi Press Agency (SPA) reported.
Saudi Arabia says the cuts will last at least a month and could be extended.
On Sunday, OPEC + announced, that a new level of oil production had been agreed upon at 40.46 million barrels per day, starting from 2024.