Saudi Arabia and Russia announced significant cuts to oil supply and exports Monday, citing a need to “stabilize markets.”
Saudi Arabia’s state-owned Saudi Press Agency announced July cuts of 1 million barrels will extend into August, producing about 9 million barrels a day through the month.
Russian Deputy Prime Minister Alexander Novak, meanwhile, said Monday that “[w]ithin the efforts to ensure the oil market remains balanced, Russia will voluntarily reduce its oil supply in the month of August by 500,000 barrels per day by cutting its exports by that quantity to global markets.” It’s unclear, however, whether the cut will result in reduced production or only reduced exports.
Much of the West, including the U.S., have sought to hamper Russian oil imports since the country invaded Ukraine in 2022, including de facto price caps on sea-borne Russian oil.