The Arabe country is the lar­gest crude pro­ducer in the world

Repsol: Saudi Arabia Hints At Possible Cut In Production


Renta 4 | 1. Saudi Arabia’s Energy Minister, prince Salmán bin Abdulaziz, has hinted that Saudi could cut its oil pro­duc­tion.

This decision has been based on the extreme volatility and the lack of liquidity of oil futures which are leading to a decorrelation in the price with the fundamentals of supply and demand. For that reason, OPEC+ could see itself obliged to reduce output.

  1. Saudi Arabia is the largest crude producer in the world and the member with the biggest weighting in OPEC. The country’s oil production is around 9 million barrels per day.


A positive impact. Saudi Arabia’s hints at a possible cut in output due to the current decorrelation between the price of oil and the supply-demand, is good news for black gold prices. So there will be fresh upward pressure on crude. We should remember that for Repsol, the variations in a dollar of oil implies an impact of 75 million euros on EBITDA and 54 million on Operating cash flow.

Artículos relacionados