EMEA News
Saudi Arabia to Cut Oil Production
Saudi Arabia is expected to cut production levels between 200,000 and 300,000 barrels per day once the summer is over, the Wall Street Journal reports.
According to reports, production is expected to drop to 10.3 million barrels per day, a decline from a record-high of 10.56 million barrels per day in June.
"It is purely based on the [domestic] demand situation," said an unnamed source.
The Organization of Petroleum Exporting Countries (OPEC), of which Saudi Arabia is the highest producing member, is said to be currently over-producing by as much as 2.5 million barrels per day.
According to experts, the world's largest crude exporter typically reduces production in the fall as domestic demand falls.
It was suggested that production will likely remain at around 10 million barrels per day until the end of the year.
The figures come as oil prices are once again being battered by concerns of a global supply glut following a deal to lift sanctions off of Iran.
Crude prices have not fallen so dramatically since late last year, when the Organization of the Petroleum Exporting Countries (OPEC), staunchly maintained a production ceiling of 30 million barrels per day despite supply fears.
At the time, the announcement sparked a massive plunge in crude prices as the value of oil fell by half.
