The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, on Sunday decided to maintain its oil output at 40.463 million barrels per day over 2024. However, Saudi Arabia voluntarily cut its output by a million barrels per day.
In October last year, the group and its allies agreed to a 2 million barrels per day cut, followed by a voluntary cut by some members in April this year for a total of around 1.6 barrels per day.
In addition to the missing 3.6 million barrels of oil per day from the global supply, Saudi Arabia decided to make another one-month cut by 1 million barrels per day on Sunday, beginning in July. This brings its total voluntary cut to 1.5 million barrels per day, reining Riyadh’s production to 9 million barrels.
Oil prices shot up in the Asia’s morning session on Monday after the voluntary cut by Saudi Arabia. The international benchmark Brent crude rose 2.4% to $78.00 a barrel, while the West Texas Intermediate gained 2.5% to $73.53 a barrel.