Inspenet, July 18, 2023.
A report by the International Energy Agency (IEA) projects a decline in Riyadh’s oil production during the months of July and August. This month the Arab country announced the extension of its voluntary cuts of one million barrels a day until August.
According to IEA forecasts, Russia will surpass Saudi Arabia as the main oil producer within the OPEC+ group. Crude output in Riyadh is estimated to drop to 9 million barrels a day in July and August (the lowest level in two years), putting the kingdom behind Russia as the leading producer in the 23-member bloc. oil-producing countries, which represents approximately 40% of world production.
The decision of each oil-producing country
This IEA projection comes after the Arab country’s decision to extend its cuts for an additional month, in an effort to balance crude oil prices.
This month, Riyadh extended voluntary cuts of 1 million barrels a day until August, while Moscow pledged to reduce its exports by 500,000 barrels a day during August.
In June, both main OPEC+ producers maintained the oil extraction levels of May, respectively reaching 9.98 million and 9.45 million barrels per day .
Prince Abdulaziz bin Salman, the Arab energy minister, highlighted his country’s strong cooperation with Russia in the oil sector in early July. In addition, he assured that OPEC+ would do everything necessary to support the oil market and satisfy the interests of both consumers and producers.
Several countries within the bloc expressed their willingness in April to reduce daily crude production by a total of 1.66 million barrels until the end of 2023, and agreed to continue with the cuts next year.
Source: https://actualidad.rt.com/actualidad/473526-rusia-adelantar-arabia-saudita-productor-lider-crudo
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