Saudi authorities have instructed Aramco - the national oil company - to cut crude oil production in June by 1 million barrels per day, in addition to the reduction under the agreement to reduce OPEC +, Reuters reported referring to a Saudi energy ministry official.

“This brings the total production cut that will be carried out by the Kingdom, to around 4.8 million barrels per day, from the April production level,” the official said. 

“Therefore, the Kingdom’s production for June, after both its targeted and voluntary cuts, will be 7.492 million barrels per day,” he added.

Brent crude went up 19 cents, or nearly 1%, to $ 31.16 a barrel, while West Texas Intermediate went up 38 cents, or 1.5%, to $ 25.12.

Global oil demand fell by about 30% due to the COVID-19 pandemic.

OPEC and its allies led by Russia have agreed last month to cut production by about 9.7 million barrels per day in May and June, which is a record decline in production. Producers will gradually ease restrictions after June, although supply cuts will remain until April 2022.

Following the agreement, target oil production in Saudi Arabia is 8.492 million barrels per day in May and June.

““The Kingdom aims through this additional cut to encourage OPEC+ participants, as well as other producing countries, to comply with the production cuts they have committed to, and to provide additional voluntary cuts, in an effort to support the stability of global oil markets,” the Saudi official said. (Reporting by Rania El Gamal; editing by David Evans)