Ron Bousso of Reuters reports that Saudi Arabia is pushing an oil price war to regain market control, but weak global demand and economic uncertainty may limit its impact. Despite increasing supply, falling prices may not spark higher demand, risking budget strain and tension within OPEC+. Bousso writes:
Saudi Arabia has signalled it is willing to enter a painful price war to assert dominance over other oil producers, but worsening global economic conditions mean the kingdom’s standard playbook might be less effective this time around.
Saudi Energy Minister Prince Abdulaziz bin Salman in recent weeks has appeared to threaten an all-out price war to restrain recalcitrant OPEC+ members that have failed to comply with the alliance’s production quotas. […]
Even though its oil production costs are among the lowest in the world, it also requires a crude price of over $90 a barrel to balance its national budget, according to the International Monetary Fund’s assessment of the 2025 budget.
And protracted market weakness could make OPEC+ members restless.
Read more here.
