Oil price war is really on as saudi arabia ramps production by 1m barrels daily
I think there may be some misinformation here.
While it's true that the global oil market has been experiencing volatility in recent months, there hasn't been a sudden announcement from Saudi Arabia about ramping up production by 1 million barrels per day (mb/d).
In fact, Saudi Arabia, along with other major oil-producing countries, has been working to stabilize the market and maintain a balance between supply and demand. The Organization of the Petroleum Exporting Countries (OPEC), which includes Saudi Arabia, has been coordinating with other major producers to manage the global oil supply.
That being said, there have been some recent developments that could impact the oil market:
- OPEC+ (OPEC and non-OPEC producers) agreed to increase production by 500,000 barrels per day (b/d) in July, effective from August 1. This decision was made to offset the impact of the COVID-19 pandemic on global oil demand.
- Saudi Arabia has been increasing its production capacity to meet growing demand, but this is a gradual process that has been ongoing for several years.
- The United States, which is the world's largest oil producer, has been increasing its production levels, which has put downward pressure on oil prices.
It's worth noting that the oil price war you're referring to is likely a reference to the 2014-2016 oil price war between Saudi Arabia and Russia, which was sparked by a disagreement over market share and pricing. However, that conflict has largely subsided, and the global oil market has been more focused on managing supply and demand imbalances in recent years.
If you're concerned about the impact of oil prices on your investments or daily life, I recommend staying informed through reputable sources, such as the International Energy Agency (IEA), OPEC, or major oil companies.