logo logo

The next-generation financial news, and trading signals for you to start driving your FOMO today!


FREE trading signals

Get free daily crypto signals to make profitable trades every day!

View fresh signals


Peter Davis

An writer at FOMOdrive

  • Aug 04, 2023
  • 2 min read

Oil soared on Saudi decision

Saudi Arabia has determined that the reduction in oil production will be prolonged until September.

Before this, there had been speculation in the market that the kingdom would reject this action.

Next month, Russia will prolong the reduction in exports.

Oil prices regained nearly all of the losses they had experienced the day before.

The Saudi Arabian state agency (SPA) announced on Thursday that Saudi Arabia will continue to voluntarily reduce its oil production by 1 million b/d for a third consecutive month, extending the cut through September.

In a statement, the SPA declared that the OPEC+ countries have taken precautionary measures to keep the oil markets stable and balanced, resulting in additional voluntary cuts.

As a result of the potential for this abbreviation to be extended or even further extended and deepened, it is estimated that the daily production in the country will be around 9 million barrels per day in September.

According to Bloomberg, OPEC+ countries saw their oil production fall at the most rapid rate in three years due to the actions of Saudi Arabia. The cartel's average daily output in July was 27.79 million barrels, the lowest since the start of the COVID-19 pandemic in 2020.

Today, Alexander Novak, the Deputy Prime Minister of Russia, declared that the country will be extending its voluntary reduction of oil supplies by decreasing exports by 300,000 barrels per day in September.

TASS reported on Thursday that the Ministry of Finance's data showed that the volume of revenues to the federal budget of Russia from the oil and gas industry had decreased by 1.7 times and amounted to 4.193 trillion rubles in the first seven months of 2023.

MarketWatch reports that investors are eagerly awaiting the meeting of the OPEC+ Ministerial Monitoring Committee (JMMC) on Friday, although it is unlikely that any alterations to the production policy will be suggested.

Share this article