Related Articles
Forward article link
Share PDF with colleagues

Saudi strategy runs deeper than cuts

Saudi Arabia’s production restraint may boost prices in the short term, but it may also assure the Kingdom greater market control in the longer term

Saudi energy minister Prince Abdulaziz bin Salman presented his early January announcement that the Kingdom would reduce its oil production by 1mn bl/d during February and March as a “gift” to the oil industry. And oil price bulls certainly reacted as if they had received a present as the market roared above $50/bl. But the decision, taken by Prince Abdulaziz’s brother Crown Prince Mohammed bin Salman (MbS), is also part of a longterm outlook designed to ensure oil price stability in a range that will allow Saudi Arabia to proceed with megaprojects under the wide-reaching Vision 2030. With oil revenues providing around SAR100bn ($27bn) less than was budgeted in 2020—c.53.5pc of the total—R

Comments

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
Bangladesh hails Henry Hub linkage in US LNG deal
4 August 2021
South Asian importer hopes for price advantage compared with Brent
ExxonMobil announces 2021 Power Play finalists and community voting
4 August 2021
Sixteen outstanding professionals are up for awards across four categories, with community voting now open
BP’s Angolan JV could provide future template
3 August 2021
The major’s pooling of non-core resources with Italy’s Eni may be a model moving forward
Sign Up For Our Newsletter
Project Data
Maps
PE Store
Social Links
Social Feeds
Featured Video