Saudi Arabia was able to contribute to rising oil prices, which will have a positive impact on Saudi oil revenues in the past year and this year, to add to the list of accomplishments it made in the previous year, especially after it took the initiative to reduce voluntary production, which pushed oil prices to record highs in the current year 2021.
Saudi Energy Minister Prince Abdulaziz bin Salman announced earlier this year that Saudi Arabia will participate in a voluntary reduction of between 250 and 400 thousand barrels per day between May and July, to reduce oil stockpiles to the average of the years 2015-2019.
77 dollars per barrel
Brent oil reached $77 a barrel this year, its highest level since mid-2018, coinciding with Russian Deputy Prime Minister Alexander Novak’s prediction that global oil consumption will climb by 5 million to 5.5 million barrels per day this year.
OPEC PLUS PLAN
To support prices, the Organization of Petroleum Exporting Countries (OPEC) and allied producers, known as “OPEC Plus,” are cutting production by about 7 million barrels per day, with Saudi Arabia adding a million barrels per day to those cuts, causing oil prices to recover their losses in 2020 and turn higher again.
After the UAE expressed reservations about extending the agreement to increase oil production without changing the base month, Russia proposed that the meeting be postponed for two days to allow the UAE to study the proposal.
With Saudi Arabia’s lengthy economic expertise in the realm of oil, in particular, the world’s main oil producers decided to boost output to relieve strain on the global economy, which is reeling under the weight of the Corona pandemic.
The OPEC Plus countries agreed to extend the oil production agreement until the end of December 2022, and it was decided at that exciting meeting to raise the OPEC Plus production baseline from 43.85 million barrels per day to 45.48 million barrels per day, with a 3.5 million barrels per day increase in UAE production.