The Saudi Energy Ministry has directed Saudi Aramco to reduce its oil production for June by extra voluntary amount of one million bpd. This is according to a news release by the Saudi Press Agency, seen by Investogist.
A Saudi Ministry of Energy Official said that this is in addition to the reduction committed by the Kingdom in the latest OPEC+ agreement, on 12th of April 2020.
This new cut will bring the total production cut that will be carried out by the Kingdom to round 4.8 million barrels per day, from the April production level. This will put Saudi Arabia’s oil production for June, at 7.492 million barrels per day.
Saudi Aramco; the Kingdom’s Oil company and top oil-producing company in the world, was also directed to seek ways to reduce its production in the current month of May, from the target level of 8.492 million barrels per day, in consent with its customers.
The Ministry Official went further to emphasize that the Kingdom aims through this additional cut, to encourage OPEC+ participants, as well as other producing countries, to comply with the production cuts they have committed to.
Also, to support the stability of the global oil markets, the Kingdom urges OPEC+ participants and other oil producer to provide additional voluntary cuts.