Saudi Arabia has confirmed its decision to continue reducing oil production by 1 million barrels per day until the end of the year. This move is anticipated to maintain oil prices at their current high levels, hovering around $90 per barrel.
Initially announced by Saudi Arabia and Russia in July. This production reduction has contributed to increased gas prices, strengthened Russia’s financial position, and complicated global efforts to combat inflation.
The Energy Ministry of Saudi Arabia reiterated this decision through an official statement, emphasizing the continuation of the production cuts until December. Sustaining a daily production rate of 9 million barrels.
The statement outlined that a review of the decision would take place next month. Considering the possibility of further cuts or production increases.
Aligned with their Vision 2030 plan, Saudi Arabia is striving for elevated oil prices to support their economic transformation objectives.
Led by Crown Prince Mohammed bin Salman. Vision 2030 aims to diversify the economy, reduce the nation’s reliance on oil, and create employment opportunities, particularly for the youth.
On Tuesday, oil prices witnessed a marginal increase, as U.S. crude oil for November delivery rose by 41 cents to reach $89.23 a barrel. And Brent crude for December delivery climbed by 21 cents to $90.92 a barrel.