By Malvika Gurung
Investing.com -- In an OPEC+ (Organization of the Petroleum Exporting Countries and allies) meeting held on Sunday for over seven hours, Saudi Arabia announced to implement further production cuts in July.
In order to fall in line with the broader OPEC+ agreement of limiting output, Saudi Arabia decided to conduct voluntary declines in July and cut the production by 1 million barrels per day (bpd) in the month.
The country's energy minister, Prince Abdulaziz, stated that Riyadh could extend the 1 bpd reduction beyond July if required, indicating Saudi Arabia's commitment to stabilizing the oil prices.
OPEC+ members reached an agreement on output policy and did not make changes to their planned oil production cuts for the ongoing year. However, the Group will further reduce overall production targets by a total of 1.4 million bpd, starting in 2024.
Saudi Arabia has also announced its intention to extend voluntary cuts of 0.5 million bpd in 2024, however, it is unclear whether the 1 million bpd reduction in July is in addition to the 0.5 million bpd voluntary cut or if the said cut is included in the July reduction, stated a Reuters report.
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