Saudi energy minister: Could cut output below current quota of 8.5 million bpd if needed

The effective oil supply cuts by OPEC+, G20 nations and SPR purchases will account to about 19.5 billion barrels per day (bpd) in total global reductions, Saudi Arabia's energy minister Prince Abdulaziz bin Salman told reporters on Monday.

"Oil purchases into reserves seen at 200 million barrels over the next couple of months would contribute towards effective output cuts," bin Salman added. "Saudi Arabia could cut oil output below the current quota of 8.5 million bpd if there was a need by market and if reductions are done collectively with others on a pro-rata basis."

The minister further noted that the Kingdom is not delaying its plans to raise the oil output capacity to 13 million bpd post OPEC+ cut pact.

Market reaction

Crude oil prices edged higher on these comments and the barrel of West Texas Intermediate was last seen trading at $23.40, adding 1% on a daily basis.