Saudi Arabia will cut oil production by 1mn barrels a day in a bid to prop up oil prices, it announced after a fractious meeting of the Opec+ group of producers in Vienna on Sunday.
The kingdom’s energy minister Prince Abdulaziz bin Salman, Opec’s de facto leader, made the move as part of a deal in which several weaker African members will have quotas reduced from next year. Russia, the world’s second-largest oil exporter, could also have its production targets lowered, though the group said this was subject to review. Meanwhile, the UAE will be able to increase its production.
Oil prices have slid in the past 10 months despite several attempts by producers to tighten supplies. The kingdom and other members announced a surprise cut in April but, after briefly rallying towards $90 a barrel, prices again reversed, falling to nearly $70 a barrel at one stage last week.