Saudi Arabia announced on 3 March that it is extending its 1mn b/d voluntary crude output cut to the end of June, in coordination with other Opec+ countries (MEES, 8 March). The 1mn b/d cut was originally implemented in July 2023, and is now set to remain in place for at least a year, although many observers expect that it will ultimately be extended to end-2024 (MEES, 1 March).

The decision to extend the cuts means that Saudi oil exports will remain constrained through the first half of 2024. While Saudi Arabia has production capacity of more than 12mn b/d, it is currently producing slightly less than 9mn b/d, with more than 3mn b/d idle. (CONTINUED - 785 WORDS)