What happens in Saudi Arabia can have a significant impact on oil supply dynamics across the world. The OPEC nations have a reputation of manipulating supplies so as to get the maximum benefit. Many of them have been blamed for keeping production deliberately low to keep supplies limited and command high prices for crude.,
However, as consumption of oil across the globe is surging, Saudi Arabia, one of the largest OPEC member is keeping pace to some extent. Infact, the higher supplies from the region have resulted in the recent slip in the Brent crude price. This is despite the fact that the kingdom's own need of oil is on a rise to meet power and travel needs. Not inclined to lose on the export revenues, Saudi Arabia is replacing crude oil with fuel oil to meet internal needs. It is even planning to focus more on the usage of gas.
But can we predict anything about the oil prices based on such developments? While higher supplies have eased crude prices for now, with so many variables affecting crude prices, it is hard to tell where prices will head from here.
However, as consumption of oil across the globe is surging, Saudi Arabia, one of the largest OPEC member is keeping pace to some extent. Infact, the higher supplies from the region have resulted in the recent slip in the Brent crude price. This is despite the fact that the kingdom's own need of oil is on a rise to meet power and travel needs. Not inclined to lose on the export revenues, Saudi Arabia is replacing crude oil with fuel oil to meet internal needs. It is even planning to focus more on the usage of gas.
But can we predict anything about the oil prices based on such developments? While higher supplies have eased crude prices for now, with so many variables affecting crude prices, it is hard to tell where prices will head from here.
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