Saudi Arabia, the world’s largest oil exporter, has already cut production more than required under the agreement between the Organisation of Petroleum Exporting Countries (OPEC) and allies outside of the group.
Thursday 08, August 2019
Saudi Arabia has contacted other oil producers to discuss possible policy responses as oil prices slide to a seven-month low, reported Bloomberg.
A Saudi official said that the Kingdom will not tolerate a continued slide in prices and is considering all options, without saying what measures were being discussed.
Oil was also swept up in a global meltdown of stock and commodity markets after rate cuts in New Zealand, India and Thailand escalated recession fears and spurred a flight to US Treasuries and other safe havens.
Helima Croft, RBC Chief Commodities Strategist at RBC Capital Markets, said that planned gatherings in Abu Dhabi in September will be critical for leaders of the OPEC+ group, especially the Saudi and Russian energy ministers, to signal their intentions on production in the wake of oil’s price collapse.