Saudi Aramco to Announce Production Cuts Starting Next Month 1... Compliance with OPEC+ Agreement

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Saudi Arabia's state-owned oil company Aramco announced that it will adjust its daily oil production to 8.5 million barrels starting from the 1st of next month, in accordance with the previously agreed production cuts with OPEC+ (the coalition of OPEC and 10 major oil-producing countries).

On the 17th (local time), Aramco disclosed through the Riyadh stock market (Tadawul) that it will adjust its daily production to 8.5 million barrels starting from the 1st of next month. This represents a reduction of 2.5 million barrels per day as agreed earlier by OPEC+. Previously, Saudi Arabia was producing 11 million barrels per day.

Earlier, on the 12th, OPEC+ held an emergency video conference and agreed to cut production by 9.7 million barrels per day from May 1 to June 30 to respond to the sharp decline in oil demand and the plunge in oil prices. Among this, Saudi Arabia and Russia agreed to reduce their production by 2.5 million barrels each per day, based on a daily production of 11 million barrels.

Regarding this production cut agreement, the energy ministers of both countries issued a joint statement on the 16th. In the statement, the ministers said, "Russia and Saudi Arabia will continue to closely monitor the oil market and, if deemed necessary, will take additional measures together with OPEC+ and other oil-producing countries."

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