The “sadistic” policy of King Salman continues, beware the cries of the world!

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Jakarta, Klinik Farma – The Saudi government on Thursday (03/08/2023) took steps to extend the unilateral production cut by 1 million barrels of oil per day until the end of September.

This is expected to raise the price of oil, which is the country’s main income.

Previously, the Saudis made cuts in July. This was done by Riyadh, taking into account the agreement of OPEC+ members to extend production cuts until next year.

The last announcement was later in the statement that was launched Saudi Press Agency. A Saudi Energy Ministry spokesman said the cuts “could be extended or deepened” if necessary.

“These additional voluntary cuts were made to reinforce precautionary measures taken by the OPEC+ countries to ensure stability and balance in the oil market,” the official said. Associated Press.

The move was widely anticipated by analysts. Benchmark Brent crude traded above $80 a barrel on Thursday.

A series of production cuts over the past year have not driven up prices amid weak demand from China and tight monetary policy in advanced economies to fight inflation. Since October last year, the price of Brent oil has mainly fluctuated between 75 and 85 US dollars per barrel.

Saudi Arabia is seeking to boost oil prices to fund Vision 2030, an ambitious plan to overhaul the kingdom’s economy, reduce its dependence on oil and create jobs for its young population.

The plan includes several massive infrastructure projects, including a futuristic $500 billion city development called NEOM.

Higher prices will also help Russian President Vladimir Putin finance his war with Ukraine by continuing to sell gas to China and India. It is known that Russia was subjected to sanctions to limit prices by Western countries because of the attack on Ukraine.

[Gambas:Video CNBC]

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