Saudi oil export revenues are set to get a boost from the kingdom’s decision to implement a substantial production cut in concert with other Opec+ producers from May onwards. The price boost is set to more than offset the reduction in export volumes, ensuring that the net effect should be revenue-positive for Saudi Arabia.
Saudi Arabia took observers by surprise when it announced on 2 April that it would voluntarily be cutting production by an additional 500,000 b/d from May. In total, eight Opec+ producers announced that they will make voluntary cuts amounting to a cumulative 1.16mn b/d, with the cuts due to last until the end of the year (MEES, 7 April). (CONTINUED - 769 WORDS)