Okaz/Saudi Gazette

JEDDAH — In line with the decision of the Organization of the Petroleum Exporting Countries and its partners (OPEC +) earlier this month, Saudi Arabia will cut oil production by 573,000 barrels per day (bpd) from November, according to monitoring conducted by Okaz/Saudi Gazette.

OPEC+ had announced a cut in oil production by two million bpd starting from November, as part of measures to maintain oil market stability and prevent volatile market conditions and confront the situation of unprecedented uncertainty in the oil market. This will be the largest cut since the beginning of 2020, specifically since the outbreak of the coronavirus pandemic. With the cut in output, the share of each of Saudi Arabia and Russia in the production of oil would reach 10.478 million bpd.

According to the Okaz/Saudi Gazette monitoring, Saudi Arabia raised its oil production for a period of 16 consecutive months, starting from April 2021 when production stood at about 8.134 million bpd while its oil production in August this year reached about 11.051 million bpd, an increase of 35.86 percent in 16 months. This was equivalent to raising its oil production by about 2.917 million bpd all through this period.

On a weekly basis, prices of Brent crude rose about two percent and WTI rose about three percent. The drop in crude prices last Friday came after Chinese cities intensified coronavirus restrictions to stem the spread of the virus, after China recorded 1,506 new cases of COVID-19 on October 27, according to the National Health Commission, up from 1,264 new cases the previous day.