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Saudi Arabia’s Cabinet Throws Support Behind OPEC+ Cut Extension

Saudi Arabia’s Cabinet Throws Support Behind OPEC+ Cut Extension

Saudi Arabia’s cabinet, or Council of Ministers, showed its support for what it considers to be precautionary measures taken by OPEC+ to stabilize the oil market, Saudi Arabi media said on Tuesday. It said it would continue to boost OPEC+ precautionary efforts to support the stability of the oil markets, Kingdom officials said.

Saudi Arabia, the world’s largest oil exporter, said last week that it would extend its 1 million barrel per day production cut through the month of September, past its original deadline at the end of August. Saudi Arabia also suggested at the time that that could be extended even beyond September and could also be deepened should the market conditions warrant such a move. With the cut extension, Saudi Arabia’s oil production for September would be 9 million bpd if it adhered to its self-assigned quota.

Saudi Arabia is carrying the bulk of the group’s production cut promises, along with Russia—the latter which has run up against price caps and import bans as the West attempts to keep oil money from flowing to the nation that could perpetuate its war in Ukraine.

Because of its disproportionate production cuts—much of which is voluntary—Saudi Arabia’s support in holding back OPEC+ production is crucial to the group’s oil-price-persuading power.

Bitumen prices in the Middle East and European Union

During last week, in the Middle East, the new steel drum bitumen is in the range of 433–443 USD and the bulk bitumen is in the range of 350–360 USD.

Bitumen price in Singapore and South Korea has reached 444 USD and 400 USD respectively, while bitumen in Bahrain has remained stable at 410 USD.

In the European Union, the bitumen price has exceeded 500 USD and in Spain has reached 556 USD.

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Saudi Arabia’s Cabinet Throws Support Behind OPEC+ Cut Extension