An additional reduction in oil production by up to 1 million bpd is also being discussed.
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Moscow. 20 November. INTERFAX.RU – Saudi Arabia, the leading oil producer among OPEC+ countries, is considering extending a voluntary restriction on oil production until at least the spring of 2024, the Financial Times writes, citing four sources close to the kingdom’s government.
The voluntary production limit of 1 million barrels per day came into force in the summer and is still in effect until the end of the year. Currently, Saudi Arabia produces about 9 million barrels of oil per day with a maximum possible 12 million bpd, FT notes.
In addition, OPEC+ is discussing an additional reduction in oil production by up to 1 million bpd, one source said. The two proposals could be brought up for discussion during the group’s next meeting on November 26.
The main reason why oil-producing countries are considering introducing new restrictions on production was the fall in oil prices to multi-month lows last week, writes FT. The outrage of OPEC members, especially Kuwait, Algeria and Iran, at the conflict between Hamas and Israel and the humanitarian crisis in the Gaza Strip also plays a role. “We cannot underestimate the level of anger and the pressure that Gulf leaders are feeling from their populations, who want to see some kind of response to what is happening,” another source said.
FT sources emphasize that no decision has yet been made on whether to extend or increase production restrictions.
Senior Advisor to the US President on Energy Affairs Amos Hochstein expressed confidence that Arab oil producers will not use energy as a weapon.
“Ever since oil became a commodity, it has been used as a weapon from time to time and we are always concerned about that and work to prevent that. I don’t think that has happened yet,” he told the FT. “The level of cooperation and coordination between producers and by consumers in the last couple of years has been very high in terms of preventing energy shocks.”
