Saudi Arabia’s deeper output cut to last two months, apply to exports: minister

Prince Abdulaziz bin Salman, Minister of Energy

Saudi Arabia’s decision to make voluntary production cut of 1 million barrels per day (bpd) over the next two months will apply to exports, Bloomberg reported, citing Minister of Energy Prince Abdulaziz bin Salman.

“This is a commercial - not a political - option,” he said, adding that the Kingdom has the capacity to withstand the reduction.

The extra cutback in February and March will end in the same fashion as the supplementary reduction made last June in cooperation with UAE and Kuwait, the minister noted.

Prince Abdulaziz indicated that the absence of Saudi oil exports to the US market last week, for first time in 35 years, is not a government decision. Saudi Aramco goes for the highest price offers, similar to its global peers, including Shell, Chevron and Exxon Mobil, he said.

Saudi Arabia offered voluntary cuts to its oil production by an additional 1 million bpd in February and March. The Kingdom’s output will reach 8.125 million bpd starting February, Argaam reported.