Saudi Arabia to lower oil output by additional 1 million bpd in June

Saudi Arabia's energy ministry has directed Aramco to reduce its crude oil production by an extra voluntary amount of one million barrels per day in June, a ministry official said on Monday, per Reuters.

Additional takeaways

"This brings the total production cut carried out by the kingdom, to around 4.8 million barrels per day from April production level."

"Kingdom’s oil production for June, after both its targeted and voluntary cuts, will be 7.492 million barrels per day."

"Ministry also directed Aramco to seek to reduce its production in the current month of May from the target level of 8.492 million barrels per day in consent with its customers."

"Kingdom aims through this additional cut to encourage OPEC+ participants and other producers to comply with the production cuts they have committed to."

"Kingdom aims to provide additional voluntary cuts in an effort to support the stability of global oil markets."

Market reaction

Crude oil prices recovered sharply on this announcement. As of writing, the barrel of West Texas Intermediate was up 1.5% on a daily basis at $26.50.