On Monday, oil prices on international markets moved clearly up after Saudi Arabia’s announcement that oil production would be cut from next month.

After a hours-long OPEC+ meeting on Sunday, Riyadh announced that it would cut the country’s oil production by 1 million barrels per day, or 10%, in order to restore its prices in the markets.

The reduction in production will take place from July 1.

Saudi Energy Minister Prince Abdelaziz bin Salman said the 1 million bpd production cut could be extended beyond July if necessary. This is a “voluntary” reduction, he explained at a press conference he gave after a meeting in Vienna of 13 OPEC member countries and ten cooperating countries led by Russia.

This cut is in addition to the decision announced in April by the OPEC+ countries (which produce more than 40% of the world’s oil) to cut production from 2024.

The price per barrel recently fell to $70 per barrel, half of what it was a year earlier: in March 2022, the world price rose to $139 per barrel.

The market reaction on Monday was an increase in world oil prices by about 2%.

Source: Reuters.