Saudi Arabia Increases Its Production Again To Break Down Oil Prices

A few days after the Doha meeting, which came out with no solution to end the crisis of the declining oil revenues, Saudi Arabia decided to increase its production of crude oil to record levels in the coming weeks.

But it provided explanations to increase its production and linked it to the local need that rises in the summer.

According to Reuters, the production can reach the limits of 10.5 million barrels per day, in the summer, by which is the period that it is expected to heal the Organization of Petroleum Exporting Countries “OPEC” that will hold a meeting in June.

Among the files that will be discussed was the installment of crude production, which the major oil-producing countries failed to agree on it, during the Doha meeting, which was described as a “failure” because of the different visions and agreements on the need for further consultations and study the situation at the next meeting.

Riyadh’s decision to increase the oil production is unlikely to disturb, despite the justifications that are linked to the local need, the oil market and directly the prices that recorded on Friday a new level, which is the highest in 2016, despite the dollar’s decline and the shrinking production in the United States.

Saudi Arabia’s decision to raise the production is unlikely to raise concerns of the oil sector and the war on the market share among the top producers, especially after Riyadh threatened to increase its production significantly if it will face a failure to reach an agreement, because it demands Iran’s participation at the next meeting, as Iran refuses to turn install its production in order to regain its market share after the lifting of international sanctions that were imposed previously.

It is certain is that the continuing disagreement between Riyadh and Tehran will lead to the collapse of the recovery in oil prices in the recent period, and so Algeria will be among the affected countries, which will complicate the economic situation of the country in the absence of real economic alternatives.