The Saudi Arabian government estimates that it is too early to modify the OPEC+ (OPEC and some non-OPEC allies such as Russia) crude oil production cuts policy at the next group’s meeting in April 2019; further output policy changes are not expected before June 2019. Saudi Arabia predicts that the global demand will continue to grow led by China.
The latest agreement between OPEC and non-OPEC oil producers was reached in December 2018. The parties agreed to jointly reduce crude oil production by 1.2 mb/d, effective as of January 2019 for an initial period of six months, in an attempt to strengthen global oil prices. The cuts are shared among OPEC countries (0.8 mb/d, Iran, Libya and Venezuela being exempted) and non-OPEC countries such as Russia (0.4 mb/d).
Saudi Arabia plans to maintain its production level of 9.8 mb/d in April 2019. The country is voluntarily pursuing a strategy of going beyond its pledged production level commitment of 10.3 mb/d to lower both its production and exports of crude oil.
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