Saudi Arabia has begun cutting its oil supply to the global economy by one million barrels per day (bpd), effective July 1, as the OPEC+ alliance of major oil-producing nations faces flagging oil prices and a looming supply glut.
The cut by Riyadh could also be extended beyond July if needed.
That said, two previous production cuts by OPEC+ members have failed to push prices up much, despite the organization pumping about 40% of the world’s crude.
In early June, OPEC+ also agreed to extend earlier supply cuts through the end of 2024 by a further total of 1.4 million barrels per day.
The organization already has a 2 million bpd production cut agreed to last year, representing 2% of global demand.