Saudi Arabia will likely roll over 1 mln bpd cut into October, analysts say
OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, agreed a broad deal in early June to curtail supplies until the end of 2024. Saudi Arabia at the time announced the additional voluntary cut which brought its oil production to a multi-year low of 9 million bpd.
Earlier this month, Riyadh extended the voluntary cut into September, with the energy ministry saying that it could be «extended, or extended and deepened».
«We think Saudi Arabia will extend the cut in full at least through October,» Richard Bronze, analyst at consultancy Energy Aspects said.
«The kingdom is adopting a cautious approach after the weakness in oil markets over the first half of the year and will want to see global inventories significantly decline before starting to unwind the additional voluntary cuts,» he added.
The Saudi energy ministry did not immediately respond to a request for comment.
Brent oil prices in July were up 14% on the previous month, the biggest monthly increase since January 2022.
