The Saudi Ministry of Energy directed Aramco to reduce its production of crude oil, for next June, with an additional voluntary amount of one million barrels per day, added to the reduction committed by the Kingdom In the last OPEC Plus agreement, on April 12, 2020.

According to ArabiaNet, the price of Brent crude rose above $ 31 after the Ministry of Energy directed an additional cut to production. According to the Saudi Press Agency, the size of the reduction that the Kingdom will adhere to, compared to its production rate in the month of April, is about 4.8 million barrels per day. Consequently, its production for June, after the base and voluntary cuts, will be 7.492 thousand barrels per day.

The ministry also directed the company to seek to reduce its production in the month of May, from the target level of 8.492 million barrels per day, in agreement with its customers.

The source asserted that the Kingdom aims from this additional reduction to motivate the countries participating in the OPEC Plus agreement, and other producing countries, to commit to the ratios of the reduction that they have committed to, and to provide more of the reduction Production, in an effort to support the stability of global oil markets.

Last April, OPEC Plus reached a historic agreement to cut production by about 9.7 million barrels, starting from May 1, 2020, and for a period of two months ending on June 30, 2020. p>

During the next six months, starting from July 1, 2020 to December 31, 2020, the agreed total reduction will be 8.0 million barrels per day. This is followed by a reduction of 6.0 million barrels per day for a period of sixteen months starting from January 1, 2021 to April 30, 2022. The reference basis for calculating adjustments is oil production for October 2018, except for Saudi Arabia and the Russian Federation, and the reference basis for each of them is 11.0 million. Barrels per day. The decision signed today will be in effect until April 30, 2022; however, the possibility of extending the decision in December 2021 will be considered.