Riyadh first applied the 1 million-barrels-per-day reduction in July.
Saudi Arabia faces a difficult juggling act between implementing oil production cuts and the blow to its crude-reliant economy. Losses incurred by trimming production — and, indirectly, marketing volumes — could be partially offset by increases in Riyadh's sale prices and in the global oil prices that underpin them.
After languishing below $75 per barrel for the better part of the first half of the year, global futures prices shot up by more than $10 per barrel over the summer, most recently boosted by security risks in OPEC member Gabon and the threat of disruption in the Gulf of Mexico, in the wake of Hurricane Idalia.
The Paris-based International Energy Agency expects increasing supply tightness in the second half of 2023 as demand recovers in China, the world's largest crude importer. Saudi Arabia depends on oil revenues to support several so-called"giga-projects" designed to diversify its economy. Crude output cuts and a fall in oil prices earlier this year led to a slowdown in Riyadh's GDP, which expanded by an annual 1.1% in the second quarter, down from 3.8% in the previous quarter and 11.2%Saudi state-controlled Aramco typically sells crude supplies through annual contracts that often state minimal volumes to be made available to clients.
At stake is also the prospect of conceding market share to Russia and Iran which produce similar-quality crude to Saudi Arabia and have primarily directed their exports to China, offering heavily discounted prices.that his country was producing as much as 3.19 million barrels per day, despite ongoing U.S. sanctions that have deprived Tehran of European and most Asian buyers.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Simon West To Shoot History Drama ‘Antara’ In Saudi Arabia’s NeomCon-Air and Lara Croft: Tomb Raider director Simon West will shoot his upcoming historic drama Antara in Saudi Arabia in the country’s growing production hub of Neom. Based on a true story, the fil…
Read more »
Pakistan's interim PM says Saudi Arabia to invest $25 bln over next five yearsSaudi Arabia will invest up to $25 billion in Pakistan over the next two to five years in various sectors, Pakistan's caretaker Prime Minister Anwaar-ul-Haq Kakar said on Monday, adding his government would also revive a stalled privatisation process.
Read more »
Saudi Arabia to invest $25B in Pakistan over next five years: KakarThe investment would come in the mining, agriculture and information technology sectors, and if confirmed would be the biggest ever by the kingdom in Pakistan.
Read more »
Daniel DePetris: Negotiations to normalize ties between Saudi Arabia and Israel are getting crowdedFour negotiations with Saudi Arabia are happening simultaneously; the one between the Israelis and Saudis may not even be the main event.
Read more »
Pakistan's interim PM says Saudi Arabia to invest $25 billion over next five years By ReutersPakistan's interim PM says Saudi Arabia to invest $25 billion over next five years
Read more »