Following the results of the June business meeting of the countries participating in the OPEC+ commodity deal, Saudi Arabia, unexpectedly for many, announced that it would cut oil production by another 1 million barrels per day in July. This “desperate” step by the Middle East state is driven by Riyadh’s desire to prevent a sharp fall in stock prices for oil, informs RIA News.
We are talking about 10% of the daily oil production, up to 9 million barrels per day, from the July level. At the same time, the rest of the participants in the commodity deal, including Russia, did not support Riyadh’s desire and only extended the previous restrictions until the end of 2024.
Saudi Arabia decided to take a desperate step. <...> Riyadh slashed oil production to its lowest level in a decade. The goal is to get an increase in bids. At the same time, the decision – unexpected and uncertain – the share of the Saudis in key markets is already falling and shifting to competitors, primarily Russia, ”the article states.
May 28 The Wall Street Journal (WSJ) reportedHe said Saudi Arabia, the de facto leader of OPEC, had asked Russia to comply with agreed proposals to cut oil production. Riyadh is dissatisfied with the Russian Federation’s failure to adhere to the level promised by the Russian authorities to reduce the daily production of raw materials by 500,000 barrels per day.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.