Saudi Arabia, Russia, and Algeria announced on the same day!, About Crude Oil Release | Measures | Crude Oil
Saudi Arabia announces a one month extension of its daily additional reduction of 1 million barrels of crude oil production
On July 3rd local time, the Saudi Ministry of Energy announced that the voluntary additional daily reduction of 1 million barrels of crude oil, which began in July, will be extended for one month until the end of August, and this measure may be further extended.
Starting from May this year, Saudi Arabia voluntarily reduced its daily crude oil production by 500000 barrels, and in July, it voluntarily reduced its daily crude oil production by an additional 1 million barrels. After two production cuts, Saudi Arabia's daily crude oil production has decreased to 9 million barrels since July this year.
It is reported that Saudi Arabia's move is aimed at jointly maintaining the stability of the international crude oil market with OPEC+countries.
Russia will reduce its daily oil exports by 500000 barrels in August
Russian Deputy Prime Minister Novak announced on July 3rd local time that Russia will reduce its daily oil exports by 500000 barrels in August.
In March of this year, Russia decided to reduce production by 500000 barrels of oil per day based on the average extraction level in February. This decision was extended until June and later until the end of the year. The new decision this time is to reduce exports rather than production.
Algeria announces an additional 20000 barrels per day reduction in crude oil production in August
On July 3rd local time, the Algerian Ministry of Energy and Mines announced a further reduction of 20000 barrels per day of crude oil production from August 1st to August 31st, resulting in a daily crude oil production of 940000 barrels in Algeria.
Previously, on April 2nd this year, the Algerian Ministry of Energy and Mines announced that the country would voluntarily reduce its daily crude oil production by 48000 barrels from May to the end of 2023.
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OPEC+reached an agreement in June to extend the production reduction agreement until 2024
Due to oversupply and other reasons, international crude oil prices have been on a downward trend since last year.
At the 33rd ministerial meeting in early October last year, OPEC+, composed of OPEC member countries and non OPEC oil producing countries, announced a daily reduction of 2 million barrels of monthly production to 41.856 million barrels starting from November 2022, based on the same August production. In early April of this year, OPEC+announced an additional voluntary daily production reduction of 1.66 million barrels from May to the end of this year, based on the above production reduction decisions. In June of this year, at the 35th ministerial meeting, major oil producing countries negotiated and extended the previously agreed production reduction agreement until 2024, and adjusted the total crude oil production target for 2024 to an average of 40.46 million barrels per day.
The International Energy Agency reports that global oil demand growth may slow down
On June 14th local time, the International Energy Agency released the 2023 Mid term Oil Market Report, stating that due to the global energy crisis highlighting high oil prices and supply security issues, the pace of global transformation towards clean energy technology is accelerating. In the coming years, the growth rate of global oil demand will significantly slow down.
The report predicts that driven by the development of the petrochemical and aviation industries, global oil demand will grow by 6% from 2022 to 2028, reaching 105.7 million barrels per day. However, despite cumulative growth, the annual growth rate of global oil demand is expected to slow down in the coming years, shrinking from 2.4 million barrels per day this year to 400000 barrels per day in 2028. One important reason is that with the continuous development of electric vehicles, increasing use of biofuels, and improving fuel efficiency, the use of petroleum as a transportation fuel will decrease after 2026.
The Director of the International Energy Agency, Birol, stated that with the advancement of technologies such as electric vehicles and the improvement of energy efficiency, the transition to clean energy is accelerating, and global oil demand is expected to peak before 2030.