Saudi energy minister Abdel Aziz bin Salman announced on the evening of March 4, local time, during the 14th meeting of oil ministers of member states of the organization of Petroleum Exporting Countries (OPEC) and some non OPEC oil producing countries, that the period of Saudi Arabia’s voluntary crude oil production reduction of 1 million barrels per day would be extended by one month to the end of April this year. After the news came out, the international oil price rose rapidly in the short term. The price of West Texas light crude oil in the United States and Brent crude oil in the United Kingdom both reached the highest level in more than a year.

Meeting of oil ministers of OPEC member states and some non OPEC oil producing countries (picture from Saudi energy ministry) △ meeting of oil ministers of OPEC member states and some non OPEC oil producing countries (picture from Saudi energy ministry)

As the world’s largest crude oil exporter in 2020, Saudi Arabia’s every move in crude oil production attracts global attention. Previously, Saudi energy minister Abdel Aziz had promised that, in addition to strictly abiding by the production reduction agreements reached by OPEC member states and some non OPEC oil producing countries, Saudi Arabia would cut an additional 1 million barrels per day of crude oil production in February and March 2021 to ensure the balance of supply and demand in the global market. Statistics show that Saudi Arabia has achieved an additional production reduction of about 850000 B / D in the past February. According to the OPEC survey, as of December 2020, the crude oil inventory of the SCO countries has declined for the fifth consecutive month.