Saudi Arabia's Golden Giveaway to Crude Producers: Oil Strategy - Bloomberg:
For years Saudi Arabian oil ministers have said that the kingdom won’t balance the oil market on its own. That is pretty much what it’s doing now.
By cutting output more than it pledged and promising to go even further next month, the world’s largest crude exporter is handing a free pass to producers elsewhere in the OPEC+ alliance and simultaneously yielding market share to the U.S.
Saudi Arabia pumped 10.213 million barrels a day of crude in January, according to figures published by OPEC. That compares with a target production level of 10.311 million, agreed in Vienna in December. And the kingdom doesn’t plan to stop there. Energy Minister Khalid Al Falih says it will remove a further 400,000 barrels a day of output in March, the Financial Times reports.
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