Saudi Arabia committed Nov. 5, 2023, to maintain its voluntary production reduction of 1 million b/d, which originally began in July 2023 and was later extended until end-December 2023, according to a Saudi Ministry of Energy source.
The decision will result in December production of about 9 million b/d.
The Saudi government plans to review the decision in December to consider extending the cut, deepening it, or increasing production, in line with ongoing efforts by OPEC+ countries to support oil market stability and balance.
Following Saudi Arabia's announcement, Russia also confirmed its commitment to a voluntary supply cut of an additional 300,000 b/d until end-December 2023.
In September of this year, Brent crude oil reached a high of nearly $98/bbl, but it has since receded to hover around $85/bbl. The Israel-Hamas war premium has also dissipated.