The Kremlin announced today, Wednesday, that Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putin held a phone call to stress the importance of reducing oil supplies, in order to ensure the stability of global energy markets. On Tuesday, Saudi Arabia and Russia announced the extension of their voluntary cuts in oil production until the end of the current year, despite the scarcity of oil supply in the market and the continued successive rises in the price of a barrel of oil.
According to yesterday’s announcement, Russia will continue to reduce its oil exports by 300 thousand barrels per day, while the Kingdom of Saudi Arabia will commit to reducing its oil production by one million barrels per day, until the end of the last quarter of 2023. According to these decisions, Saudi Arabia’s production of crude oil will reach about 9 million barrels. barrels per day during the last three months of this year, provided that this voluntary reduction is reviewed at the end of each month.
It is known that the voluntary reduction decisions taken by Russia and Saudi Arabia, which were extended yesterday, came from outside the mandatory cuts that were agreed upon within the framework of the “OPEC +” alliance, as the two countries are trying through this decision to impose more restrictions on the oil supplies available for trading in the world. The global market, in an attempt to revive oil prices. Indeed, the two countries succeeded during the last period in imposing gradual gains in the price of a barrel of oil, after previous declines this year, imposed by the slowdown in the growth of the Chinese economy, accompanied by fears of a new global financial crisis.
Yesterday, Goldman Sachs revealed its expectations that Brent crude futures prices would rise to $93 per barrel, an increase of $14 per barrel compared to its previous expectations, following the announcement of the extension by Russia and Saudi Arabia. Noting that a barrel of Brent crude traded at $89.86, in the first trading on Wednesday, after the gains achieved by oil prices yesterday, following the announcement of the decision to extend the voluntary production cut.
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2023-09-06 21:14:38
