Saudi Arabia, Russia, and Algeria announced on July 3rd that they will further reduce their crude oil supply next month to maintain stability in the international crude oil market.
Since November last year, the "OPEC+" countries composed of members of the Organization of the Petroleum Exporting Countries (OPEC) and non OPEC oil producing countries have taken measures such as reducing production to stabilize crude oil prices.
Saudi Arabia announced on the 3rd that it will extend its voluntary production reduction of 1 million barrels per day for one month until the end of August, and may continue to do so thereafter.
Saudi news agency quoted an official from the Saudi Ministry of Energy as saying that after extending the production reduction, Saudi Arabia's oil production in August was approximately 9 million barrels per day. "This additional voluntary production reduction measure aims to support the preventive efforts of 'OPEC+' countries to maintain stability and balance in the international oil market."
Saudi Arabia is the world's largest exporter of crude oil.
Shortly after Saudi Arabia announced its decision, Russian Deputy Prime Minister Alexander Novak said that Russia will reduce its crude oil exports in August by 500000 barrels per day.
According to Reuters, the reduced crude oil supply from Saudi Arabia and Russia is equivalent to 1.5% of the total global supply.
The Algerian Ministry of Energy also announced on the same day that, based on the daily reduction of 48000 barrels of crude oil decided in April, an additional 20000 barrels of daily production will be reduced from August 1st to 31st to support Saudi Arabia and Russia's efforts to stabilize the crude oil market.