Neighbouring Kuwait’s Oil Minister Khaled al-Fadhel said separately that his country would cut an additional 80,000 bpd to support the Saudi initiative.
“Kuwait supports the efforts of Saudi Arabia to restore balance to the oil market,” Fadhel said in a statement on Kuwait News Agency.
OPEC and its allies in the OPEC+ group agreed last month to cut production by a record 9.7 million bpd while other producers pledged to reduce their output by around 3.7 million bpd.
Under the deal, Saudi Arabia’s daily production was cut to 8.5 million bpd, the lowest in more than a decade.
Riyadh said the aim of the additional cut was to push OPEC+ members “and other producing nations to comply with committed production cuts and make additional reductions” to stabilise the global oil market, the energy ministry said.
Despite a first round of massive cuts which kicked in on May 1, oil prices remain extremely low, losing around two-thirds of their value this year due to a coronavirus-driven slump in demand.
Prices were further dampened in April by a price war between Russia and Saudi Arabia during which Riyadh’s production soared to a record 12.3 million bpd, pushing stockpiles to unsustainably high levels.
The ministry said that with the latest production curb, the kingdom would have cut 4.8 million bpd from the record output levels in April.
The price of the international benchmark Brent crude is hovering around $30 a barrel.