Nov 5, 2023 at 5:40 PM Update: an hour ago
Saudi Arabia and Russia continue to cut oil production. Russia previously indicated that it would continue its voluntary reduction in oil production.
Saudi Arabia is cutting oil production by a million barrels a day until the end of this year. The conflict between Israel and Gaza caused unrest in the global oil market. Producers are concerned about possible disruptions to oil exports from the Middle East if the conflict in the region escalates.
With production cuts, the countries of the OPEC+ oil cartel want to boost oil prices. These rose sharply due to the unrest around Israel. The oil market has now calmed down somewhat, resulting in a drop in oil prices.
According to experts, the extension of Saudi Arabia’s production cut is no surprise. Saudi Arabia does say that it will look at production again next month and that all options are on the table.
Central banks have warned that higher oil prices due to the war between Israel and Hamas could reignite inflation. This can influence the interest rate policy of central banks. They have paused raising interest rates against inflation.
05 Oct 2023 at 12:11
Biggest drop in oil prices in more than a year due to high interest rates
Beeld: Getty Images
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OilRussiaEconomySaudi ArabiaForeign
2023-11-05 16:40:47
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