Saudi Arabia has cut oil output aggressively in the past two years but this has failed to prevent a slide in the Kingdom’s oil revenues. Officials are facing a tough choice over what to do next and, for now, we think that they will follow through with their plans to gradually increase output over the next year. But the case for ramping up oil output is strengthening. While this would still result in some economic pain and also require Crown Prince Mohammed bin Salman (MbS) to reverse course on his approach to oil policy since coming to power, it would enable the Kingdom to recapture market share.
In view of wider interest we are also sending this Middle East & North Africa Economics Update to clients of our Commodities Overview and Energy services.
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