News Saudi Arabia cuts oil output, asks OPEC+ do same


- Advertisment -

Saudi Arabia cuts oil output, asks OPEC+ do same

News Saudi Arabia cuts oil output, asks OPEC+ do same
File Photo

Saudi Arabia said on Monday it would add to existing oil output cuts by reducing production by another 1 million bpd next month — equivalent to 1% of global oil supply.

The cut would slash its total production to 7.5 million bpd, down nearly 40% from April.

The slump in oil prices has caused significant pain to the kingdom’s budget.

It has tripled the VAT from 5% to 15% and also cancelled salary bonuses to plug deficit holes.

On Monday, the kingdom'[s cabinet urged OPEC+ countries to further reduce oil production rates to restore balance in global crude markets, state news agency (SPA) reported early on Wednesday.

“The cabinet affirmed the Kingdom of Saudi Arabia’s endeavour to support the stability of global oil markets,” according to a statement.

“The Kingdom of Saudi Arabia’s initiatives aim at urging the countries participating in the OPEC+ agreement and other producing countries to adhere to the cut rates and to provide more reduction in production in order to contribute to restoring the desired balance of the global oil markets.”

OPEC and its allies, a group known as OPEC+, decided in April to cut output by 9.7 million barrels per day (bpd) for May and June, in response to the 30% drop in global fuel demand caused by the coronavirus pandemic.

It was a record reduction.


Please enter your comment!
Please enter your name here

Recent Updates

NIDCOM chief hails Ernest Ezeajughi’s re-election as UK council mayor, Efe Ajagba’s US boxing victory

Hon. Abike Dabiri-Erewa, Chairman/CEO, Nigerians in Diaspora Commission (NiDCOM), has congratulated Nigerian-born scientist, Ernest Ezeajughi, who was elected to...

Juventus will not sign Luis Suarez – sporting director

Juventus have ended their pursuit of Barcelona striker Luis Suarez, sporting director Fabio Paratici has confirmed.The 33-year-old is expected...

Youths should be drivers of innovation, creativity for a better Nigeria – don

Prof. Isaac Adeyemi, the former Vice Chancellor, Bells University of Technology, Ogun, has charged Nigerian youths to harnessy their...

Police: Baby survives, mother dies in Anambra building collapse

The Police Command in Anambra has confirmed the rescue of a six-month-old baby from the wreckage of a storey...
- Advertisement -

Edo election: Uche Secondus, Peter Obi congratulate Governor Obaseki

Uche Secondus, National Chairman of Peoples Democratic Party (PDP) and former Anambra Governor, Peter Obi, have congratulated Gov. Godwin...

Senator Mark: Edo election a triumph of people’s will

News Agency of NigeriaFormer President of the Senate, Senator David Mark, has described the re-election of Godwin Obaseki of...
- Advertisement -

You might also likeRELATED
Recommended to you