The Saudi Arabia’s national oil company, Aramco, has been directed by the Energy Ministry to further reduce crude oil production for June, by an additional one million barrels per day on May 11.
The announcement was made after the Finance Ministry’s decisions to reduce the economic implications of the coronavirus outbreak by adopting certain measures, including increasing the Value Added Tax (VAT) from five to 15 percent.
Per the Energy Ministry, per the latest move, it will bring Saudi Arabia’s total production cut to around 4.8 million barrels per day, from the April production level.
An official from the Energy Ministry said, “Therefore, the Kingdom’s production for June, after both its targeted and voluntary cuts, will be 7.492 million barrels per day.”
The reduction will be a voluntary amount of one million barrels per day, in addition to the reduction, committed by the Kingdom in the latest OPEC+ agreement, said the official from the Energy Ministry.