The Ministry of energy of Saudi Arabia instructed the state company Saudi Aramco to reduce the oil production in June by an additional 1 million barrels per day, said Agency SPA on may 11.
Thus, next month the country will produce just less than 7.5 million barrels per day. This is about 4.8 million barrels per day lower than in April.
In addition, the Ministry called on Saudi Aramco in agreement with the clients strive to reduce its oil production in may, below the level of 8.5 million barrels per day.
The energy Ministry stressed that in this way trying to encourage members of the Organization of countries – exporters of oil and partners (OPEC+), and other producing countries to fulfill the commitments and provide additional reduction to stabilise the world oil market.
The Agency Bloomberg reported that if Saudi Arabia will meet its promises, that oil production in this country will fall to its lowest level since 2002.
Immediately after the statement of Saudi Arabia oil prices went up, reported Reuters. Brent crude rose nearly 1%, to $31,16 per barrel and Brent West Texas Intermediate by 1.5 percent, to $to 25.12 per barrel. Earlier in the session, both brands of oil fell more than $1.
The pandemic coronavirus demand for oil dropped by about 30% (about 30 million barrels per day).
April 12 members of OPEC, Russia and several other countries said that they had agreed on the reduction of oil production to 9.7 million barrels per day in may and June, which is about 10% of all applicants on the oil market (Saudi Arabia, like Russia, has pledged to reduce production in this period by 2.5 million barrels per day, to 8.5 million). Then before the end of the year, oil production will be reduced by 7.7 million barrels per day, and from January 2021 may 2022 to 5.8 million barrels per day.
Saudi Arabia is the largest oil exporter in the world.