Top oil exporters Saudi Arabia and Russia confirmed on Sunday they would continue with their additional voluntary oil output cuts until the end of the year as concerns over demand and economic growth continue to weigh on crude markets.
Both countries said their cuts would be reviewed next month to consider extending, deepening or increasing it.
Saudi Arabia confirmed it would continue with its additional voluntary cut of 1 million barrels per day (bpd) translating into a production of around 9 million bpd for December, a source at the ministry of energy said in a statement.
“This additional voluntary cut comes to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets,” the source was quoted as saying in the statement.
Following the Saudi statement, Moscow also announced it would continue its additional voluntary supply cut of 300,000 bpd from its crude oil and petroleum product exports until the end of December.
OPEC+, which comprises the countries of the Organization of the Petroleum Exporting Countries (OPEC) and leading allies including Russia, has been cutting output since last year in what it says is pre-emptive action to maintain market stability.
Oil hit a 2023 high in September at near $98 a barrel for Brent crude, although it has since weakened to trade around $85 a barrel on Friday, despite support from the conflict in the Middle East.
Saudi Arabia, OPEC’s de-facto leader, first made the voluntary cut for July as an addition to a broad supply-limiting deal first agreed by some members of OPEC+ in April.
The kingdom said in September it would extend its additional voluntary cut until the end of the year, and review the decision monthly.
Analysts had widely expected the kingdom to confirm it would extend its cut in December.
A June decision by OPEC+ already limits supply into 2024.
The alliance is next due to meet on Nov. 26 in Vienna.