Crown Prince Mohammed bin Salman of Saudi Arabia. Bandar Algloud/Courtesy of the Saudi Royal Court/Handout via Reuters
Saudi Arabia is expected to extend its oil production cuts until October, according to a Bloomberg survey.
The Gulf kingdom has cut its crude output in recent months in a bid to prop up benchmark prices.
It depends to some extent on oil revenue to finance its huge expenditure projects.
Saudi Arabia may stick to its recent oil production cut for the next two months in a bid to raise prices and raise more revenue to finance its high-spend projects, according to a survey.
Twenty of 25 commodity traders and analysts surveyed by Bloomberg said they expect the Gulf kingdom to extend its current production cuts through October.
The world’s biggest crude exporter began pumping 1 million barrels per day fewer in July and has kept output at the same level since then.
Benchmark Brent crude prices rose to around $88 a barrel earlier this month as the market adjusted to a drop in supply, but have declined in recent weeks on concerns that China’s economic issues could lead to a global collapse. There will be a fall in the level of demand.
Oil is a major engine of growth in Saudi Arabia, which is currently in the midst of a massive economic diversification drive under its leader, Mohammed bin Salman.
Bin Salman, who is the country’s Crown Prince and Prime Minister, is leading the Vision 2030 program, which he is funding through a combination of raw revenue and increased borrowing.
The country has planned to build a futuristic desert mega-city called Neom from scratch and has already embarked on a sporting spending spree, with the government-backed Public Investment Fund buying English Premier League soccer club Newcastle United has launched PGA Tour rival LIV Golf. and wooing Cristiano Ronaldo for the Saudi Pro League.
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