OPEC Data Reveals Saudi Arabia’s Decision to Reduce Oil Production Leads to Oil Prices Surpassing $90 Per Barrel on London Stock Exchange

Taking into account the latest OPEC data, Saudi Arabia’s decision to reduce oil production has created a situation where oil prices have already exceeded 90 dollars per barrel on the London Stock Exchange.

World oil reserves, which have shrunk significantly in the third quarter, will shrink even more in the next three months – by about 3.3 million barrels per day.

“If these forecasts are true, it will be the largest reduction in oil reserves since 2007,” the OPEC report said.

It says the 13 OPEC members produced an average of 27.4 million barrels of oil per day, 1.8 million less than what consumers need.

If the organization keeps oil production unchanged, as Saudi Arabia plans to do, then the gap between demand and supply will double in the next two months. According to OPEC’s assessment, 30.7 million barrels of oil per day will be needed in the fourth quarter to meet global demand.

OPEC’s actions show that the organization plans to rapidly reduce oil reserves. In developed countries, oil reserves are already on average 114 million barrels lower than the average in 2015-19. years.

Saudi Arabia is said to want oil prices close to $100 a barrel to cover government spending and various ambitious projects under Crown Prince Mohammed bin Salman. The kingdom has spent huge sums on various projects, from futuristic cities to high-class footballers, such as bringing Cristiano Ronaldo to the local football league.

2023-09-13 07:35:00
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