Opec+ holds policy despite Saudi’s extended oil cut

Opec+ members decided to maintain the group’s current oil output policy despite Saudi Arabia extending its voluntary production cut into September.

“The committee will continue to closely assess market conditions,” the joint ministerial monitoring committee said after holding an online meeting on Friday, adding that the panel urged members to achieve full compliance with output cut commitments.

Oil prices have surged over 14 percent month on month in July, the biggest monthly percentage increase since January 2022, supported by tighter supply and growing demand outweighing economic growth concerns.

Saudi Arabia announced on Thursday it was extending its voluntary oil output cut of one million barrels per day (bpd) until the end of September, adding that this could be extended further or deepened.

Oil prices on Friday closed at nearly $86 a barrel, close to their highest since mid-April.

Russia will also cut oil exports by 300,000 bpd in September, deputy prime minister Alexander Novak said.

Algeria, which declared an additional voluntary cut of 20,000 bpd for August, is still to determine whether to extend the cut into September, Reuters reported, citing an informed source.

Opec+ agreed to limit supply into 2024 at its policy meeting in June.

The committee will hold the next meeting on October 4.