Saudi Arabia navigates oil cuts amid Trump pressure, economic strains
Saudi Arabia would need oil to be at $90 per barrel in 2025 to balance its budget, according to Capital Economics.
DUBAI — Saudi Arabia faces a year of uncertainty in the energy markets as it considers reversing oil production cuts within OPEC+ while also steering its economy through the potential challenges of lower oil prices.
During a virtual meeting on Monday, OPEC+ members agreed to maintain current production cuts until April, despite pressure from US President Donald Trump on the Saudi- and Russia-led exporters' group to lower prices.
The group is currently holding back oil production volume of 5.85 million barrels per day, or the equivalent of around 5.7% of global demand, from the oil markets.
OPEC+'s decision had little impact on Brent crude, the benchmark for two-thirds of the world's oil trade. Following the announcement, Brent closed lower, at $75.96 per barrel.
