Saudi Arabia deepens oil cuts as weak demand weighs on prices - Reuters:
Saudi Arabia will voluntarily deepen oil output cuts from June as low oil prices are causing huge pain to the kingdom’s budget and global demand remains weak due to lockdowns to contain the coronavirus pandemic.
The announcement by the kingdom to add 1 million barrels per day (bpd) - equal to 1% of global supply - to the previously announced cuts follows last week’s phone conversation between U.S. President Donald Trump and Saudi Arabia’s King Salman.
Trump had worked last month to persuade Saudi Arabia, fellow OPEC members and Russia - a group known as OPEC+ - to cut oil output after a collapse in crude prices put heavy pressure on U.S. producers.
Last Friday, the two men discussed oil and defence amid news Washington would withdraw two Patriot anti-missile batteries from Saudi Arabia that have been a defence against Iran. Washington said the withdrawal was not linked to oil.
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