Can Saudi Arabia combat global oil crisis?

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 Can Saudi Arabia combat global oil crisis?
Image source: © Kodym | Megapixl.com

Highlights

  • Saudi Arabia plans to increase its global oil supply following sanctions of the US and its western allies on the Russian oil supply.
  • The production is planned to increase in September could upsurge in July and August to meet the global oil demand.
  • The said decision is the repercussion of the Biden administration reaching out to Saudi Arabia once again for the oil supply. 

The world economy is drowning under the toll of the oil supply crunch, followed by a massive increase in living expenses across nations. Inflation is reaching sky-high limits across continents, causing a heavy burden on national governments to cope with the discrepancies in the energy supply chain.

It’s been months since Russia decided to invade Ukraine, and the US and other western allies imposed sanctions on Russia to dissuade the country from further invading Ukraine. However, Russia rather had stringent plans. So, in the end, the sanctions put by the US and other allies have significantly impacted other nations as well.

Undeniably, the world economy runs largely on energy. Unfortunately, the delay in the collective attempt to shift to renewables is another big factor why nations are now experiencing skyrocketing inflation. Nonetheless, Saudi Arabia has recently come into the limelight in combating the global oil crisis.

 Oil supply crunch

Source:  © Shkamaru | Megapixl.com

Saudi Arabia to take the lead in the global oil supply?

As per various recent media reports, Saudi Arabia plans to increase its global oil supply following the sanctions of the US and its western allies on the Russian oil supply. Additionally, in the recent OPEC meet, it was decided that all the OPEC organisations may increase their global oil supply. As Saudi Arabia is the highest oil supplier among the OPEC countries, there are hopes that the country may soon be back in the driving seat of the oil market.

According to reports, the production, planned to increase in September, can be raised in July and August to meet the global oil demand. The said decision is the repercussion of the Biden administration reaching out to Saudi Arabia once again for the oil supply.

All in all, the world economy is being crushed under heavy disequilibrium between the oil supply and demand. With sanctions imposed on Russian oil, several nations are suffering to meet the energy demand. However, decisions from the latest OPEC meeting may help the world economy relieve the oil supply chain. Now, it is to be seen how Saudi Arabia’s steps could help the energy supply conundrum in the upcoming months.  

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