Saudi Arabia says it has reduced its oil production to less than 10 million barrels a day (mb/d) – the lowest level in two years – in line with a drive by the Organization of the Petroleum Exporting Countries (OPEC) to eradicate a global glut and prop up prices.
Saudi Arabia’s Energy Minister Khalid al-Falih was quoted by media as saying that the kingdom had decreased its output more than it had promised as part of a global output cut deal between OPEC and non-OPEC producers.
Falih, speaking at the Atlantic Council Global Energy Forum in Abu Dhabi, said output was below 10 mb/d currently, adding that the Kingdom planned to make even deeper cuts in February, Reuters reported.
The world’s biggest oil exporter had agreed to cut its oil production by 486,000 barrels a day (bpd) to 10.058 mb/d as part of a global deal to reduce output to curb a supply glut.
Such levels were last seen in February 2015, when Riyadh began to steeply raise production to deal a blow to US shale oil producers, effectively becoming the architect of a prolonged oil price crash.
This means Saudi Arabia has cut oil production by more than the 486,000 bpd it agreed to late last year under a global deal to curb production and stem a fall in oil prices, Reuters added.
The caps on production, together with rising demand and natural decreases in output in some countries, will help balance the market and support prices, Al-Falih said in his speech, as quoted by Bloomberg.
OPEC and non-OPEC producers last month reached their first deal since 2001 to curtail oil output jointly by nearly 1.8 mb/d for an initial six month period to help stem a fall in oil prices and ease a supply glut.