Saudi Arabia considers 1 million barrel a day cut on oil

Bill Farren-Price, a long-term Opec follower and consultant at Petroleum Policy Intelligence, said in a note to clients late last week that sources inside and outside the oil cartel had told him a 1m b/d export cut by Saudi “was on the table” among other options, though no decision had yet been made.

Saudi Arabia has led Opec’s efforts – in alliance with other big producers like Russia – to remove 1.8m b/d from the oil market as they attempt to draw down bloated inventories and boost the price of crude.

“Such a move would critically demonstrate Saudi Arabia’s commitment to the deal and cooperation with Russia, its determination to follow through and make the cuts work; and implies the kingdom is willing to shoulder additional cuts further down the line if needed,” said Farren-Price.

 

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