WDH/ROUNDUP: Saudi Arabia cuts oil production by a million barrels from July

(First sentence of the second paragraph clarified)

RIYADH (dpa-AFX) – Saudi Arabia wants to further reduce its oil production to support oil prices from July. From July, the daily production volume will be reduced by one million barrels (159 liters each) for at least a month, the country’s energy ministry said on Sunday evening. This means that the voluntary production cut will add up to 1.5 million barrels per day, and oil production will then amount to nine million barrels per day. The funding cut is intended to underpin Opec+ measures, it said.

The move is believed to be part of an agreement by the oil cartel Opec+. After hours of tough negotiations, the alliance of 23 countries agreed on Sunday in Vienna that the funding cuts would continue. According to this, around 40 million barrels (159 liters each) are to be promoted per day in the coming year. According to calculations by the Russian agency Tass, this means a reduction in the total Opec+ production volume by 1.39 million barrels per day.

Most recently, in April, a production cut of 1.66 million barrels (159 liters each) per day until the end of the year was decided to stabilize the oil price.

Apart from a brief spike in April, oil prices have been falling for around a year. In mid-2022, a barrel of OPEC oil cost around $115; it is currently around $75. Verbund had already reacted to this development in October 2022 and decided to cut production by two million barrels a day. Allianz has a global market share of around 40 percent

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