Here's three reasons why Saudi Arabia won't cut oil production any time soon
Saudi Arabia also cut production byper day in June to shore up prices. According to the latest monthly OPEC report, Saudi produced around 8.4 million barrels per day in July.
But sources told the FT that Riyadh is reluctant to cut output further, especially given its position as effective leader of the so-called"OPEC+" exporter group, that includes the 13 members of the Organization of the Petroleum Exporting Countries, as well as other major producers such as Russia, Oman and Kazakhstan.No handing away market share to rival countries
Saudi Arabia reportedly is concerned if it cuts output, it would surrender market share to rival exporters and undermine the OPEC+ agreement to reduce production by 7.7 million barrels per day until December, down a previously agreed record 9.7 million barrels per day. Brent prices took a beating in April as coronavirus lockdowns torpedoed demand for fuel. While Brent prices fell roughly from a closing price as high as $59.31 at the start of March to just above $19 April, US crude prices briefly fell to as low as -$40 a barrel.OPEC and its partners agreed to curb output by 9.7 million barrels in May and June, but a number of members were slow to adhere to the deal, such as Iraq and Nigeria.
The group reached a deal in July to extend production until August followed by a commitment from the bloc's second biggest member Iraq, to stick to its agreed targets, with a cut of 400,000 barrels a day in August and September.
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