Saudi Arabia Likely to Reconfirm December Cuts Soon

Saudi Arabia will likely reconfirm in the coming days the extension of its voluntary oil output cut of 1mbpd through December, six analysts told Reuters.

• "As Saudi Arabia and OPEC+ follow a 'proactive, preemptive and precautionary policy', and considering ongoing economic growth concerns, I would expect Saudi Arabia to announce an extension of their voluntary production cut," said UBS analyst Giovanni Staunovo.
• Five other analysts told Reuters they also expected Saudi Arabia to keep the cut for December - and also that they saw a possibility of it being maintained beyond that month.
• "We think Saudi Arabia is likely to extend its voluntary cut beyond end-December," analyst Richard Bronze from Energy Aspects, said.
• "Saudi Arabia is very unlikely - given the current price level and seasonal demand weakness – to consider a production increase, not for December and most likely not during the first quarter either," Ole Hansen of Saxo Bank said.
• Based on the practice in previous months, the decision on keeping the cut for December will likely come in early November. Decisions on cuts for 2023 would be unlikely ahead of the next full OPEC+ meeting that is scheduled for 26 November