Saudi Arabia and Russia extend oil output cuts until mid-2024

Riyadh and Moscow, pillars of the OPEC+ alliance of oil-exporting countries, announced on Sunday the extension of their voluntary production cuts until mid-2024 in an effort to support oil prices. Saudi Arabia will continue to reduce its production by one million barrels per day (bpd) for the period from April to June, as announced by its Ministry of Energy, cited by the official Saudi Press Agency (SPA).

Russia also reported an extension of the reduction by 471,000 bpd, covering both production and exports. Despite a smaller share in the federal budget than before the conflict in Ukraine, revenue from hydrocarbon sales remains essential for Moscow as its economic activity focuses on the war effort to support its military assault on its neighbor.

In both Riyadh and Moscow's cases, these measures are in addition to the 500,000 bpd reduction announced in April 2023, which runs until the end of 2024. 

Other members of the alliance, such as Kuwait, are also expected to extend their cuts, albeit to a lesser extent. This coordinated strategy was unveiled in spring 2023 for a total of 1.6 million bpd, before being reinforced by additional efforts from Moscow and Riyadh.