sales of Saudi oil fell sharply after the entry into force of the transaction OPEC+ in may. In the United States and Europe, they were lower in two times in comparison with April, in Asia, the volume of supply is reduced for at least 12 clients, according to Bloomberg.
Saudi Arabia lost ground in crucial regions on the background of a record production cut. In addition to the quota of 8.5 million barrels per day in the framework of the agreement, she took on additional responsibilities to remove from the market a million barrels from June.
Thus, the decline from the April highs reached 5 million. The publication’s source claims that for some customers in USA and Europe supplies of Saudi oil fall to 60 or even 70 percent.
Before that, after the March cancellation of the agreement OPEC+, Saudi Arabia dramatically increased production and offered customers record discounts on raw materials. This policy allowed her four times to increase the supply in the United States and to press Russia on the European market. In particular, Poland has completely abandoned Russian oil through Saudi.
However, a month later, the Kingdom was forced to reduce discounts and to drastically change the internal economic policy. June 1, the country suspends the payment of the subsistence minimum, and from July 1, increases the value-added tax in three times — up to 15 percent. To take extreme measures had due rapid growth of the budget deficit. In the first quarter it grew to nine billion dollars.
