DUBAI, May 12 — Saudi Arabia will voluntarily deepen oil output cuts from June as low oil prices are causing huge pain to the kingdom's budget and global demand remains weak due to lockdowns to contain the coronavirus pandemic. The announcement by the kingdom to add 1 million barrels per day...
A gas flame is seen in the desert near the Khurais oilfield, about 160km from Riyadh, Saudi Arabia June 23, 2008. — Reuters pic
Trump had worked last month to persuade Saudi Arabia, fellow Opec members and Russia — a group known as Opec+ — to cut oil output after a collapse in crude prices put heavy pressure on US producers. He said the kingdom wants to be “ahead of the curve” and he sees signs of demand picking up as countries move to ease restrictions on movements imposed over the past months to stop the spread of the coronavirus epidemic.Yesterday, a Saudi energy ministry official said new cuts would bring total Saudi production down by around 4.8 million bpd in June versus April. Output would then stand at 7.492 million bpd, the lowest in almost two decades.
Oil prices rose on the announcements, with the benchmark Brent and WTI futures paring earlier loses to trade at US$31 a barrel and US$25.12 a barrel respectively.Global oil demand has slumped by about 30 per cent as the coronavirus pandemic has curtailed travel and economic activity across the world, building up inventories globally.
Asked whether the deeper cuts by Saudi Arabia would continue beyond June, Prince Abdulaziz declined to comment, but struck an optimistic note on the future of the oil market. On Monday, Saudi Arabia said it would triple value added tax and suspend a cost of living allowance for state workers.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Saudi Arabia to raise VAT threefold amid ‘painful’ austerity measures | Malay MailRIYADH, May 11 — Saudi Arabia is suspending the cost of living allowance and raising the value added tax threefold, as part of measures aimed at shoring up state finances, battered by low oil prices and a severe coronavirus-driven slowdown. “Cost of living allowance will be suspended as of June...
Read more »
Saudi Arabia triples VAT rate amid oil slump, virus battleIt also cut allowances for state workers, calling the measures 'painful but necessary'. FMTNews SaudiArabia
Read more »
Saudi Arabia triples VAT, ends cash aid | The Malaysian InsightSharp decline in oil revenue as coronavirus pandemic saps global demand for crude.
Read more »
S. Arabia triples VAT, suspends handouts in 'painful' austerity driveThe measures come as the country steps up plans to slash government spending. FMTNews Arabia
Read more »
Saudi Aramco seeking to review price of SABIC dealDUBAI: Saudi Aramco is looking to restructure its deal to acquire a controlling stake in petrochemicals maker SABIC after a more than 40% drop in SABIC's value following a slump in oil prices in coronavirus pandemic, two sources told Reuters.
Read more »
Saudi to cut oil output by another 1 million barrels a day | The Malaysian InsightSaudi to cut oil output by another 1 million barrels a day
Read more »