The Ministry of Energy of Saudi Arabia issued a circular on the afternoon of May 11th local time, saying that it has issued an instruction to the Saudi National Oil Company-Saudi Aramco, starting from June on the basis of the production reduction share specified in the production reduction agreement of the oil-producing country “Volunteerly” reduce crude oil production by an additional 1 million barrels.
The Ministry of Energy ’s notice shows that after the implementation of the “extra voluntary production reduction”, the final output will reach 7.492 million barrels per day. Earlier, the Saudi Ministry of Energy had instructed Saudi Aramco to reduce crude oil production in May to about 8.5 million barrels per day. A notice from the Saudi Ministry of Energy shows that the implementation of additional production cuts is aimed at promoting oil-producing countries to comply with the previously agreed production cuts to further stabilize the global oil market.
The Ministry of Energy ’s notice shows that after the implementation of the “extra voluntary production reduction”, the final output will reach 7.492 million barrels per day. Earlier, the Saudi Ministry of Energy had instructed Saudi Aramco to reduce crude oil production in May to about 8.5 million barrels per day. A notice from the Saudi Ministry of Energy shows that the implementation of additional production cuts is aimed at promoting oil-producing countries to comply with the previously agreed production cuts to further stabilize the global oil market.
Saudi Arabia and Russia and other countries have announced an increase in crude oil production after the negotiations on the crude oil reduction agreement broke down in March this year. Saudi Arabia ’s April crude oil production once exceeded 12 million barrels / However, due to the imbalance between supply and demand, the oil price plunged in the international crude oil market.
On April 13, after oil-producing countries such as Saudi Arabia and Russia reached a production reduction agreement within the OPEC + framework, the Saudi side has repeatedly stated that it will strictly implement the production reduction agreement. Statistics show that if Saudi Arabia achieves additional production cuts in June, the oil production of 7.492 million barrels per day will also become the lowest crude oil production in Saudi Arabia since 2004.
(Originally titled “Saudi Arabia Announces Additional Production Reduction of Million Barrels, June Crude Oil Output Will Be Reduced to” Limit Low “)