In the event of announcing reductions in oil supply, energy minister of United Arab Emirates said on Monday that the nation will be cutting its oil output by one million barrels per day (bpd) in the month of June, under the OPEC+ pact.
The decision is based on the motive to expedite draining world oil supply and stabilize the oil market.
With countries moving to ease restrictions on lockdowns, Prince Abdulaziz bin Salman is hopeful of the gradual recovery in the crude demand over the coming years. Further, he said that Riyadh’s losses aren’t conditional or restricted to them alone.
Persistent low prices have been negatively influencing UAE’s budget and dwindling global demand due to coronavirus pandemic. On Monday, Saudi Arabia comes up with a decision to triple value added tax and suspend a cost of living allowance for the state workers, and with controlled stringency to counter the oil demand collapse and restlessness in the economic conditions of the country due to Covid-19. Saudi’s decision to slash 7.5 million barrels per day might help bolster oil prices in the coming days.