Saudi Arabia’s oil production cut a ‘precautionary’ measure: Energy minister

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Saudi Arabia’s decision on extra voluntary oil supply cuts was taken as a “precautionary” measure that aims to ensure market stability, Saudi Energy Minister Prince Abdulaziz bin Salman told Al Arabiya.

Saudi Arabia announced on Sunday that it will make deep production cuts in July. Prince Abdulaziz told a news conference after an OPEC+ meeting that the cut of 1 million barrels per day (bpd) by Riyadh could be extended beyond July if needed.

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“We will continue [taking] precautionary measures as long as we don’t see clarity and stability in the market,” Prince Abdulaziz told Al Arabiya in an interview after the announcement was made.

“Our mission is to present the oil market with clear data in order to [maintain] stability.”

As per the decision, Saudi Arabia’s output would drop to 9 million barrels per day (bpd) in July from around 10 million bpd in May.

OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, reached a deal on output policy after seven hours of talks and decided to reduce overall production targets from 2024 by a further total of 1.4 million barrels per day.

Prince Abdulaziz also told Al Arabiya that independent parties will work with OPEC + countries regarding evaluating their production in 2024.

“Independent parties will end the previous controversy over production data in OPEC +,” he said when asked about the importance of restoring to such entities.

As for Russia’s oil production, the energy minister said that the matter was discussed, and Russia was asked to clarify its data in order to maintain transparency with Moscow about its oil production figures.

Read more:

OPEC+ discussing deepening oil production cuts, sources say

Saudi Arabia to cut oil output in July, OPEC+ extends deal into 2024

Oil prices on the rise, jump more than $2 a barrel following production cuts

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