Saudis cut down oil production to jack-up prices during Covid

Saudi Arabia said it might unilaterally cut off 1 million barrels per day of crude production beginning next month, a surprise move signifying the kingdom’s stress that a resurgent coronavirus is threatening international economic recovery.The announcement Tuesday came later Riyadh agreed earlier in the afternoon with other large manufacturers to maintain the band’s collective output apartment, following a now-monthly evaluation from the Saudi-led OPEC cartel and several large producers headed by Russia.  In that arrangement, both groups, collectively known as OPEC-plus, consented to a intricate deal to maintain production widely unchanged from present levels. Oil prices, which had risen sharply on news of this OPEC-plus deal, jumped on the Saudi statement.   Brent crude climbed 4.9percent to $53.6070 a barrel. Saudi Energy Minister Abdulaziz bin Salman reported that the unilateral move was made”with the goal of supporting our market, the savings of our coworkers and friends, the OPEC-plus nations, for the improvement of the business.”

 

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