Saudis pledge even deeper oil cuts in February under OPEC+ deal

DUBAI and RIYADH  (Bloomberg) -- Saudi Arabia will pump oil for six months at levels “well below” the voluntary production limit it accepted under OPEC’s oil-cuts accord, Energy Minister Khalid Al-Falih said.

The world’s biggest exporter targeted January production of 10.2 MMbpd and is aiming to pump 10.1 million in February, Al-Falih said in a Bloomberg Television interview. Saudi Arabia’s voluntary limit under the December cuts deal with Russia and other allied producers was 10.33 MMbpd.

“Demand will start picking up at the end of the first quarter and into the second quarter,” he said. The impact of the reduction “will trickle down into the global markets over the next few weeks.”

The Organization of Petroleum Exporting Countries and its allies are seeking to buttress crude. Benchmark Brent has gained 12% this year. Saudi Arabia and like-minded countries are determined to drive inventories below the five-year historical average, Al-Falih said.