Saudi Arabia is set to decrease the amount of oil it exports to the global economy as a unilateral measure aimed at boosting the declining crude oil prices. This decision follows two previous cuts to the oil supply by major producing countries in the OPEC+ alliance, which did not succeed in raising oil prices. Starting in July, Saudi Arabia plans to reduce its oil production by 1 million barrels per day. Meanwhile, other OPEC+ members, in a meeting held in Vienna, agreed to extend their existing production cuts until the next year. During a press conference, Saudi Energy Minister Abdulaziz bin Salman characterized the reduction as a "lollipop" and expressed their aim to enhance the situation. He added that the cut could be prolonged and assured that the group would take any necessary measures to bring stability to the market.
According to Jorge Leon, Senior Vice President of Oil Markets Research at Rystad Energy, the anticipated result of the new oil cut is a probable short-term increase in oil prices. However, the subsequent impact will hinge on Saudi Arabia's decision regarding the extension of the cut.
© Copyright 2023. All Rights Reserved Powered by Vygr Media.
