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Saudi Arabia Will Reduce Its Oil Production By An Additional One Million Barrels Starting In June

Baghdad, Saudi Arabia announced it intends to reduce its daily oil production by an additional one million barrels starting in June, in an attempt to help the market restore its balance and raise prices in light of declining demand due to the emerging Coronavirus.

A Saudi official source told the government news agency that the Ministry of Energy directed Aramco to reduce its production of crude oil, for next June, with an additional voluntary amount of one million barrels per day.”

This amount is added to the reduction that the Kingdom has committed to in the recent OPEC Plus agreement. Thus, the volume of the reduction will be about 4, 8 million barrels compared to April, thus its production for the month of June will be 7 million and 492 thousand barrels. “

The Ministry also directed the company to strive to reduce its production in May from the target level of 8 million and 492 thousand barrels per day, in accordance with its customers. “

The source emphasized that the Kingdom aims from this additional reduction “to motivate the countries participating in the OPEC Plus agreement, and other producing countries, to commit to the ratios of the reduction committed, and to provide more reduction in their production, in an effort to support the stability of global oil markets.”

The “OPEC +” group, which includes OPEC countries and countries exporting outside OPEC, led by Russia, agreed last month to reduce by 9.7 million barrels. Saudi Arabia’s share of production fell according to the agreement, which was 8.5 million barrels. “

Source: National Iraqi News Agency

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