On Wednesday, Saudi Arabian state news agency SPA reported that the country’s cabinet has urged countries of OPEC+ (Organization of Petroleum Exporting Countries and its non-member producer allies) to further cut their oil output to boost balance in the global crude market.
“The Kingdom of Saudi Arabia’s initiatives aim at urging the countries participating in the OPEC+ 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,” the statement said.
Previously in April, OPEC+ has agreed to reduce oil production by 9.7 million bpd for May and June to react to the crashing global fuel demand caused by the coronavirus pandemic. The reduction is the biggest on record.
On Monday, Saudi said that the kingdom would deepen its own cutting quota by 1 million bpd in June. The cut is equivalent to 1% of the world’s oil supply. Oil output will be at 7.5 million bpd, a 40% drop from April level.
