Saudi Arabia plans to keep its crude oil production in April below 10 million barrels per day (bpd), and maintain exports under 7 million bpd, the energy ministry said on Wednesday, as the top OPEC producer wants to end a global supply glut and boost prices, Reuters reports.
Saudi Arabia, the world’s biggest oil exporter, has been pumping below its OPEC target since January and reducing its crude shipments, as it turns its focus on cutting exports in an attempt to drain global oil stocks.
“Despite nominations coming in at 100,000 barrels a day, higher than the previous month, allocations were maintained on par with their March levels,” the ministry said in a statement.
A spokesman for the energy ministry said that Saudi Arabia along with the OPEC and non-OPEC oil producers participating in a global supply cut agreement “remain committed to pursuing the common objective of restoring inventories back to their normal levels.”
The Organization of the Petroleum Exporting Countries and non-OPEC producers led by Russia have agreed to maintain oil output cuts until the end of 2018 aiming to reduce global inventories and support prices.
OPEC has made the five-year average its main target and managed to reduce the glut to around 74 million barrels above that benchmark, from above 300 million when the cuts began in 2017.