Saudi Arabia Extends Production Cuts in Bid to Boost Prices

Saudi Arabia Extends Production Cuts in Bid to Boost Prices

Saudi Arabia , Extends Production Cuts , in Bid to Boost Prices .

On August 3, Saudi Arabia said that it will extend unilateral production cuts of one million barrels of oil a day in an effort to bolster energy prices.

On August 3, Saudi Arabia said that it will extend unilateral production cuts of one million barrels of oil a day in an effort to bolster energy prices.

'The Independent' reports that the news comes as other OPEC+ producers extended earlier production cuts through 2024.

An anonymous official representing the kingdom's Energy Ministry said that the cut could "be extended or deepened" if needed.

This additional voluntary cut comes to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets, Anonymous Energy Ministry official, via Saudi Press Agency.

The ongoing production cuts have largely failed to boost prices due to reduced demand from China and tightening monetary policies.

'The Independent' reports that Saudi Arabia is looking to fund Vision 2030, an ambitious plan that includes efforts to reduce dependence on oil and create jobs.

'The Independent' reports that Saudi Arabia is looking to fund Vision 2030, an ambitious plan that includes efforts to reduce dependence on oil and create jobs.

Vision 2030 reportedly includes a number of huge infrastructure projects, including the development of the $500 billion futuristic city called Neom.

Rising oil prices would also help fund Russia's war on Ukraine, as the United States and its allies have used a price cap to bite into Moscow's revenue.

Rising oil prices would also help fund Russia's war on Ukraine, as the United States and its allies have used a price cap to bite into Moscow's revenue.

Due to western sanctions, Russia has been forced to sell oil at a discount.

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In May, Moscow saw its estimated export revenue drop by $1.4 billion to hit $13.3 billion, down 36% compared to the same time in 2022.

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In May, Moscow saw its estimated export revenue drop by $1.4 billion to hit $13.3 billion, down 36% compared to the same time in 2022.