DUBAI: Saudi Arabia said on Monday it would extend its voluntary oil output cut of one million barrels per day (bpd) for another month to include August, sending oil prices higher.

“The kingdom’s production for the month of August 2023 will be approximately 9 million barrels per day,” the SPA quoted an official source from the Ministry of Energy as saying.

The source added that the voluntary cut could be extended beyond August.

Russia to cut oil exports by 500,000 bpd in August, Novak says

Russian Deputy Prime Minister Alexander Novak also said shortly after the Saudi announcement that his country would cut its oil exports by 500,000 barrels per day in August.

The Saudi voluntary cut is in addition to a previous voluntary cut announced by the kingdom in April alongside other OPEC+ producers, which extends until December 2024.

Saudi Arabia, the de-facto leader of OPEC, had pledged earlier this month to make a deep cut to its output in July, on top of a broader OPEC+ deal to limit supply into 2024 as the group sought to boost flagging oil prices.

Oil prices rose on news of the Saudi cut, with Brent up 85 cents to $76.26 a barrel by 0915 GMT, overshadowing concerns about a global economic slowdown and possible further interest rate hikes from the U.S. Federal Reserve.

OPEC+, which groups the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, pumps around 40% of the world’s crude.

“This additional voluntary cut comes to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets,” the SPA official source was quoted as saying.