Expect a ‘Saudi First’ policy on oil production cuts

      Published on Friday, 30 November , 2018      3 Views      Comments Add Comment
Expect a ‘Saudi First’ policy on oil production cuts


Saudi Arabia will likely move to cut its oil output in order to prop up crude prices, against Donald Trump‘s demands to keep pumping so that prices stay low.



Analysts believe that despite Washington’s geopolitical leverage over the kingdom,

after its staunch defense of the Saudi monarchy amid accusations over its alleged role in the murder of Saudi journalist Jamal Khashoggi, Riyadh will still pursue its own economic interests rather than abide by the wishes of President Trump.

The pivotal question hanging over oil markets remains that of production cutbacks. Who will tighten their taps, and by how much?

The answers to these questions will be negotiated by the world’s largest crude producers — Russia, Saudi Arabia and the U.S. — at this week’s G-20 meeting in Buenos Aires, Argentina, and then at the OPEC+ meeting in Vienna, Austria, the following week.

The spectrum is huge, ranging from a potential 500,000 to as many as 2 million barrels per day (bpd) taken off the market, according to Ehsan Khoman, head of MENA research and strategy at the Dubai branch of Japanese bank MUFG.

“Saudi Arabia will likely see through the pressure and not entertain calls from President Trump, and in fact lower production,” he said.



“The key question now is the size and magnitude of the actual production cuts for each of the OPEC members.”

Keywords:
Category Business | 2018/11/30 latest update at 1:00 PM
Source : CNBC | Photocredit : Google
4 Views
Comments Add comment



Related Articles

The editorial staff of Saudi Arabia Today would like to give all of its readers from Gulf and Saudi Arabia and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Saudi Arabia Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Saudi Arabia, the Gulf and the world.

Latest Comments


Ten major challenges that Saudi Arabia survived
Saudi Arabia Saudi Arabia news

Ten major challenges that Saudi Arabia survived

THE Kingdom of Saudi Arabia throughout its political history encountered many challenges and obstacles that could have limited…

Qatar May Be About to Annoy Saudi Arabia Even More

Saudi Crown Prince MBS Meets Modi In Argentina After Khashoggi

Saudi Crown Prince MBS Should Fear The Long Reach of Justice on Khashoggi

King Salman: Iran creates chaos devastation in the region Gulf TV, Saudi Arabia

King Salman: Iran creates chaos devastation in the region

SaudiArabia’s King Salman said that #Iran creates chaos and devastation in the region, interferes in surrounding countries’ internal…

Saudi Arabia King Salman meets president of Niger at Riyadh palace King

Saudi Arabia King Salman meets president of Niger at Riyadh palace

King Salman met the President of Niger, Mahamadou Issoufou, at his palace in Riyadh on Monday. The leaders held talks on boosting…

King Salman unveils $35.6 billion project for industrial city King

King Salman unveils $35.6 billion project for industrial city

Boosting the country’s mining infrastructure, Saudi Arabia has unveiled a SAR 86 billion ($35.6bn) project, Wa’ad Al Shamal,…

King Salman First Time Speaks About Jamal Khashoggi Gulf TV, Saudi Arabia

King Salman First Time Speaks About Jamal Khashoggi

King Salman First Time Speaks About Jamal Khashoggi

GULF TV

Popular in GULF TV

Turkey Seeks Arrest of Two Saudi Crown Prince MBS Allies Over Khashoggi

191 Views

Turkey Seeks Arrest of Two Saudi Crown Prince MBS Allies Over Khashoggi

Latest videos in GULF TV

Events

Lifestyle

Culture

Sport

Science & Technology

Government