Saudi strategy runs deeper than cuts
Saudi Arabia’s production restraint may boost prices in the short term, but it may also assure the Kingdom greater market control in the longer term
Saudi energy minister Prince Abdulaziz bin Salman presented his early January announcement that the Kingdom would reduce its oil production by 1mn bl/d during February and March as a “gift” to the oil industry. And oil price bulls certainly reacted as if they had received a present as the market roared above $50/bl. But the decision, taken by Prince Abdulaziz’s brother Crown Prince Mohammed bin Salman (MbS), is also part of a longterm outlook designed to ensure oil price stability in a range that will allow Saudi Arabia to proceed with megaprojects under the wide-reaching Vision 2030. With oil revenues providing around SAR100bn ($27bn) less than was budgeted in 2020—c.53.5pc of the total—Riy
Also in this section
12 December 2025
The federal government is working with Alberta to improve the country’s access to Asian markets and reduce dependence on the US, but there are challenges to their plans
11 December 2025
The removal of the ban on oil and gas exploration and an overhaul of the system sends all the right messages for energy security, affordability and sustainability
10 December 2025
The economic and environmental cost of the seven-year exploration ban will be felt long after its removal
9 December 2025
The group’s oil production declined in November, our latest analysis finds, amid divided sentiment over market balances and geopolitical jitters
