Posted on May 11, 2020
Saudi Arabia scrambles to boost oil prices and revive the market it helped crash
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Saudi Arabia is pledging to make even deeper cuts to its oil production as the kingdom scrambles to revive the crude market it helped crash.
The world's largest oil exporter announced Monday it will slash oil production by another 1 million barrels per day in June. That's on top of the record-setting cuts reached by OPEC and Russia in April to halt the historic collapse in prices during the coronavirus pandemic.
That would leave Saudi Arabia's daily output at just 7.5 million barrels, down 39% from April when the kingdom was intentionally flooding the market with oil in the midst of an epic price war with Russia.
The latest production cuts by Saudi Arabia, the world's largest oil exporter, underscore the intense pressure the oil crash has put on the Middle East nation's budget.
"They need to get prices higher and stabilize the oil market because that's their ATM," said Helima Croft, head of global commodity strategy at RBC Capital Markets.
The world's largest oil exporter announced Monday it will slash oil production by another 1 million barrels per day in June. That's on top of the record-setting cuts reached by OPEC and Russia in April to halt the historic collapse in prices during the coronavirus pandemic.
That would leave Saudi Arabia's daily output at just 7.5 million barrels, down 39% from April when the kingdom was intentionally flooding the market with oil in the midst of an epic price war with Russia.
The latest production cuts by Saudi Arabia, the world's largest oil exporter, underscore the intense pressure the oil crash has put on the Middle East nation's budget.
"They need to get prices higher and stabilize the oil market because that's their ATM," said Helima Croft, head of global commodity strategy at RBC Capital Markets.
Saudi Arabia scrambles to boost oil prices and revive the market it helped crash
Posted from cnn.com
Saudi Arabia
Oil and Energy
Oil
Posted >1 y ago
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Talk about a perfect storm.... production war with Russia, at the same time a global pandemic brings commerce and travel to a standstill, at the same time that most of the traveling season (summer) is in shutdown... I ma guessing SA needs the price of oil to go higher to pay off the monthly partying bills of all the princes and princesses in London.
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