%20to%20cut%20its%20output%20by%20an%20additional%201%20million%20barrels%20per%20day,%20starting%20from%20June,%20to%20support%20the%20crash%20in%20oil%20prices%20and%20help%20speed%20up%20stabilization%20of%20the%20oil%20market./spanspan%20lang=EN-USIt%20also%20urged%20fellow%20Member%20Countries%20of%20the%20Organization%20of%20the%20Petroleum%20Exporting%20Countries%20(strongOPEC)/strong and%20allies%20to%20do%20likewise.%20/spanspan%20lang=EN-US%20img%20class=alignnone%20size-medium%20wp-image-1556%20src=https://ibekachikwu.com/wp-content/uploads/2020/05/IMG_8638-300x180.png%20alt=%20width=300%20height=180%20//spanspan%20lang=EN-USThis%20comes%20after%20the%20general%20cut%20agreed%20upon%20by%20OPEC+%20(13%20OPEC%20member%20countries%20and%20its%2010%20allies)%20in%20April%202020,%20to%20cut%20oil%20production%20by%209.7%20million%20barrels%20per%20day%20(BPD)%20starting%20on%20May%201,%20due%20to%20low%20demand%20caused%20by%20the%20COVID-19%20pandemic. /spanspan%20lang=EN-US /spanspan%20lang=EN-USA%20statement%20by%20the%20Energy%20Ministry,%20cited%20by%20the%20Saudi%20Press%20Agency%20(SPA),%20read:%20/spanspan%20lang=EN-USThe%20Kingdom%20of%20Saudi%20Arabia's%20initiatives%20aim%20at%20urging%20the%20countries%20participating%20in%20the%20OPEC+%20agreement%20and%20other%20producing%20countries%20to%20adhere%20to%20the%20cut%20rates%20and%20to%20provide%20more%20reduction%20in%20production%20to%20contribute%20to%20restoring%20the%20desired%20balance%20of%20the%20global%20oil%20markets./spanspan%20lang=EN-USThis%20cut%20will%20further%20reduce%20the%20world’s%20biggest%20exporter’s%20production%20to%207.5%20million%20barrels%20per%20day,%20after%20the%20agreed%20cut%20by%20OPEC%20had%20already%20reduced%20the%20country’s%20production%20to%208.5%20million%20barrels%20per%20day. /spanspan%20lang=EN-US /spanspan%20lang=EN-USDespite%20the%20cut%20that%20kicked%20off%20on%20the%20first%20day%20of%20this%20month,%20oil%20prices%20have%20remained%20low%20due%20to%20the%20global%20fall%20in%20demand,%20causing%20a%20deficit%20in%20almost%20every%20oil-producing%20nation’s%20budget%20for%20the%20year%202020. /span){kind=link}
The Kingdom of Saudi Arabia announced on Monday, May 12, 2020, that it had asked Aramco (the country’s oil giant) to cut its output by an additional 1 million barrels per day, starting from June, to support the crash in oil prices and help speed up stabilization of the oil market.
It also urged fellow Member Countries of the Organization of the Petroleum Exporting Countries (OPEC) and allies to do likewise.
This comes after the general cut agreed upon by OPEC+ (13 OPEC member countries and its 10 allies) in April 2020, to cut oil production by 9.7 million barrels per day (BPD) starting on May 1, due to low demand caused by the COVID-19 pandemic.
A statement by the Energy Ministry, cited by the Saudi Press Agency (SPA), read:
“The Kingdom of Saudi Arabia’s initiatives aim at urging the countries participating in the OPEC+ agreement and other producing countries to adhere to the cut rates and to provide more reduction in production to contribute to restoring the desired balance of the global oil markets.”
This cut will further reduce the world’s biggest exporter’s production to 7.5 million barrels per day, after the agreed cut by OPEC had already reduced the country’s production to 8.5 million barrels per day.
Despite the cut that kicked off on the first day of this month, oil prices have remained low due to the global fall in demand, causing a deficit in almost every oil-producing nation’s budget for the year 2020.