Saudi Cabinet urges more oil cuts from OPEC+ members to help rebalance oil markets

Saudi Arabia’s King Salman bin Abdulaziz chairs a virtual cabinet session meeting. (SPA)

Saudi Arabia Council of Ministers is urging OPEC+ members to adhere to current oil cut rates and to provide a further reduction in their production to rebalance global oil markets, according to a statement from the cabinet.

“The Cabinet affirmed the Kingdom of Saudi Arabia’s endeavor to support the stability of global oil markets, pointing out the announcement in which the Kingdom of Saudi Arabia expressed commitment to the recent OPEC+ agreement on the cut of crude oil production, as well as the Kingdom of Saudi Arabia's initiative to reduce crude oil production for June by an extra voluntary amount of 1 million barrels per day, and the Kingdom of Saudi Arabia's endeavor to reduce its production in May in consent with its customers,” according to a statement attributed to Saudi Arabia’s Acting Minister of Media Dr. Majed bin Abdullah al-Qasabi.

Saudi Arabia directed its national oil company Aramco to reduce its crude oil production for June by an extra voluntary amount of 1 million barrels per day, on top of the reduction already committed by the kingdom under the OPEC+ cut deal.

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“The Cabinet said that the Kingdom of Saudi Arabia's initiatives aim at urging the countries participating in the OPEC Plus agreement and other producing countries to adhere to the cut rates and to provide more reduction in production in order to contribute to restoring the desired balance of the global oil markets,” al-Qasabi added in his statement.

Saudi Arabia’s Council of Ministers held a virtual cabinet meeting on Tuesday chaired by King Salman bin Abdulaziz in which they discussed several issues, including the Kingdom’s latest efforts to combat the coronavirus pandemic.

(With Reuters)

Last Update: Wednesday, 20 May 2020 KSA 09:54 - GMT 06:54