Categories: Business

Saudi Arabia slashes crude oil output by 1 million bpd


Saudi Arabia cut crude production

new Delhi. Saudi Arabia has announced an additional reduction of one million barrels per day in crude oil production. With the reduction, the country's crude oil production will come down to the lowest level in 18 years. Saudi Arabia has announced several steps to support the economy today. According to experts, to reduce oil prices, it has been decided to reduce oil production. It is believed that other oil producing countries may also be involved in this step.

The financial crisis in Saudi Arabia has arisen due to the Corona crisis. The government is making a lot of efforts to improve economic health, in which several steps have been taken today to increase income. Oil production cuts are also part of this process. The government is hoping that reducing production with signs of increased demand will bring prices to a standstill and with the increase in demand, prices will also rise.

With this, today the Saudi Arabian government has increased the rate of tax on essential goods to three times. Along with this, the government has announced a reduction of $ 26 billion in several ongoing projects in the country. At the same time, some schemes related to common people have also been discontinued. The government wants to reduce the burden on the state exchequer by cutting it until the price of oil starts rising.

Brent crude is currently priced at $ 30 a barrel. Last month, prices had come down to $ 20 a barrel. At the same time, the price of WTI crude reached negative in April.

This post was published on May 11, 2020 9:41 pm

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