With OPEC’s supply cut agreement effectively dead, and Saudi Arabia and Russia racing to hike production, the oil market has clarity on a critical component of global supply.
Under pressure from President Donald Trump, Saudi Arabia is preparing to max out production to near its capacity of 12.5 million barrels a day as Washington gets ready to apply harsh economic sanctions on Iran in November. Saudi Arabia’s Gulf OPEC allies, the UAE and Kuwait, are taking similar steps, while non-OPEC member Russia is eager to boost revenues to support its oil-dependent state budget.
