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Saudi Arabia said Sunday it will make an additional voluntary cut of 1M bbl/day of crude oil starting in July as part of a new OPEC+ agreement that includes an extension of voluntary cuts through 2024.
The move would come on top of the 500K bbl/day voluntary cut announced in April, reducing total Saudi production to 9M bbl/day, which would be its lowest output level since June 2021.
The United Arab Emirates gets a boost to its quota for next year, coming at the expense of African members who were asked to give up part of their unused quota.
OPEC+ also said in a statement it will keep official production targets unchanged for the rest of this year and limit combined oil output from January-December 2024 to 40.46M bbl/day.
ETFs: (NYSEARCA:USO), (BNO), (UCO), (SCO), (DBO), (USL), (DRIP), (GUSH), (USOI), (NRGU)
The Saudi cut is the most meaningful part of the deal and makes good on Energy Minister Prince Abdulaziz bin Salman’s recent warning to speculators to “watch out.”
More on OPEC+ and crude oil:
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