US SPR squeezes Saudi economy
Action by consuming governments has shown they can significantly affect oil prices and put a spoke in OPEC’s wheels
Middle Eastern and Central Asian economic growth is projected to decline to 2.5% in 2023 from 5.4% in 2022, according to the IMF, with a downward revision of 0.4 percentage points compared with the previous forecast being attributable mainly to a steeper-than-expected slowdown in Saudi Arabia. Growth in the Kingdom is expected to fall from 8.7% in 2022 to 1.9% in 2023, a downward revision of 1.2 percentage points. The IMF attributed the slow Saudi growth to an agreement among OPEC+ members to cut output in April this year. Data published about the same time showed Saudi Arabia’s income from oil sales dropped in May 2023 to the lowest level since 2022 (see Fig.1). The IMF economists failed to
Also in this section
19 December 2024
Deepwater Development Conference welcomes Shell’s deepwater development manager to advisory board for March 2025 event
19 December 2024
The government must take the opportunity to harness the sector’s immense potential to support the long-term development of the UK’s low-carbon sector
18 December 2024
The energy transition will not succeed without a reliable baseload, but the world risks a shortfall unless more money goes into gas
18 December 2024
The December/January issue of Petroleum Economist is out now!
