Saudi Arabia announced that it will implement deep oil production cuts in July on top of a broader OPEC+ deal to limit supply into 2024, Reuters added.

OPEC+, which is a group of the Organization of the Petroleum Exporting Countries and allies led by Russia, seeks to boost flagging oil prices.

Saudi’s output reduction would be the biggest in years as it intends to drop from 10 million barrels per day to 9 million barrels per day in July, Saudi’s Energy Ministry Prince Abdulaziz told a news conference.

“This is a Saudi lollipop,” Prince Abdulaziz said. “We wanted to ice the cake. We always want to add suspense. We don’t want people to try to predict what we do… This market needs stabilization”.

Saudi Arabia is the only OPEC+ member with enough storage and spare capacity to readily increase and decrease supply.

It was able to respond rapidly to excess supply that weakened the market in the early stages of the pandemic in 2020 when the group of producers implemented record output cuts.