The Kingdom of Saudi Arabia has officially pledged to reduce oil production by one million barrels per day during the upcoming months of February and March.
At the same time, most OPEC producers will keep their production levels stable alongside new lockdown measures being implemented. It is noteworthy that Saudi Arabia has been one of the largest exporters within the Organization of the Petroleum Exporting Countries (OPEC). Ultimately, an agreement was reached allowing several countries, including Russia, to increase production while the Saudis reduce theirs.
Baker Hughes, a company specializing in energy services, stated that the number of active oil rigs in the United States has risen again, increasing by 8 to reach 275 this week. Analysts have reported that global oil prices could experience a correction in the coming months if fuel demand remains constrained due to the pandemic.
