The start of Saudi Arabia’s voluntary cuts dragged Opec crude oil production down by 680,000 b/d to a 22-month low of 27.52mn b/d for July. With the kingdom’s voluntary cuts falling somewhat short of the full 1mn b/d pledged, the group’s production is set to drop further in August, especially as Algeria weighs in with its 20,000 b/d voluntary cut.
Moreover, Saudi Arabia announced on 3 August that its 1mn b/d voluntary cuts are to be extended to end-September, ensuring that the group’s output will remain at relatively low levels throughout Q3. With Saudi Arabia seeking to whip oil markets into shape, the Ministry of Energy noted that the cuts “can be extended, or extended and deepened,” as it hinted at the prospect of even deeper production cuts. (CONTINUED - 983 WORDS)