Saudi Arabia Announces Cut in Oil Production of More Than 1 Million Barrels Per Day; Bold Move Shakes Global Energy Market and Leaves OPEC+ 'Caught With Its Pants Down'

Saudi Arabia Announces Cut in Oil Production of More Than 1 Million Barrels Per Day; Bold Move Shakes Global Energy Market and Leaves OPEC+ ‘Caught With Its Pants Down’

Written by Flavia Marinho

Published on 13/04/2023 at 16:03

Prince Mohammed Bin Salman / Imagem Te South Center

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Surprise Cut: Saudi Arabia Breaks the Stalemate With High Confidence and Unprecedented Victory.

Saudi Arabia has gained more confidence and influence in OPEC+ policies since Crown Prince Mohammed Bin Salman ordered the flooding of oil markets three years ago during a dispute with Russia. The claim was made by Energy Minister Prince Abdulaziz bin Salman in a recent TV interview.

Recall that in March 2020, OPEC+ was in a stalemate with the Kremlin over production cuts in response to the Covid-19 pandemic. While Riyadh wanted to cut production, Russia wanted to wait. Prince Abdulaziz bin Salman stated that when he told the Crown Prince that the cartel had not reached an agreement on quotas, the ruler ordered Saudi Arabia to hit its “maximum production capacity.”

High Confidence

This critical episode gave Saudi Arabia greater conviction to use its status as the world’s largest oil exporter. On April 2 of this year, Saudi Arabia surprised OPEC+ by announcing a production cut of more than 1 million barrels per day, shaking global energy markets. OPEC+ includes members of the traditional Organization of the Petroleum Exporting Countries and Russia, another of the largest sellers of the commodity in the world.

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Saudi Arabia’s Boldness Worked.

Saudi Arabia’s boldness worked. When OPEC+ met in mid-April of that year, its members agreed to cut 9.7 million barrels per day – just below the initial proposal of 10 million. The minister stated that the decision was not a matter of price, profit, or revenue, but rather a matter of “to be or not to be” and who will be the master of this sector.

Saudi Arabia’s decision to flood the oil markets three years ago during a dispute with Russia gave the country more confidence to be more assertive in OPEC+ policies. The claim was made by Energy Minister Prince Abdulaziz bin Salman, in a recent TV interview. Saudi Arabia surprised OPEC+ on April 2 of this year by announcing a cut

Saudi Arabia Announces Cut in Oil Production of More Than 1 Million Barrels Per Day; Bold Move Shakes Global Energy Market and Leaves OPEC+ ‘Caught With Its Pants Down’

Surprise Cut: Saudi Arabia Breaks the Stalemate With High Confidence and Unprecedented Victory.

High Confidence

Saudi Arabia’s Boldness Worked.

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Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

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The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

BNDES opens billion-dollar credit of up to R$ 50 million per client for the purchase of trucks, buses, and equipment and promises to accelerate the renewal of the heavy fleet on Brazilian roads.

Pickle juice, molasses, and brewery waste are spread by trucks on frozen roads in Massachusetts to melt ice after a shortage of road salt, repurpose industrial waste, and reduce damage to rivers and lakes used as sources of drinking water.

China places in the sea an 8-story, 25,000-ton steel giant, the largest offshore wind station in the world, capable of transmitting 6 billion kWh per year and bringing clean energy to areas increasingly distant from the coast.

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Saudi Arabia Announces Cut in Oil Production of More Than 1 Million Barrels Per Day; Bold Move Shakes Global Energy Market and Leaves OPEC+ ‘Caught With Its Pants Down’

Surprise Cut: Saudi Arabia Breaks the Stalemate With High Confidence and Unprecedented Victory.

High Confidence

Saudi Arabia’s Boldness Worked.

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

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BNDES opens billion-dollar credit of up to R$ 50 million per client for the purchase of trucks, buses, and equipment and promises to accelerate the renewal of the heavy fleet on Brazilian roads.

Pickle juice, molasses, and brewery waste are spread by trucks on frozen roads in Massachusetts to melt ice after a shortage of road salt, repurpose industrial waste, and reduce damage to rivers and lakes used as sources of drinking water.

China places in the sea an 8-story, 25,000-ton steel giant, the largest offshore wind station in the world, capable of transmitting 6 billion kWh per year and bringing clean energy to areas increasingly distant from the coast.

Braking only in front of the radar and accelerating right after may no longer be an option for drivers, because BR-101 in Espírito Santo tested a system that measures the average speed over an entire stretch and caught a car at 124 km/h on a 60 km/h road.

Building a 95-square-meter house in 2026 can start at around R$ 185,000 at the reference base and exceed R$ 330,000 in high standard, but the final cost depends on the land, finishing, fees, and the region, with the South of the country being among the most expensive in Brazil.