NEW YORK – Saudi Arabia, one of the world’s largest oil producers, may soon cut oil production, experts were quoted as saying Thursday.
The move, which some analysts believe may have already begun, comes in response to additional supplies coming online from elsewhere, said a report.
The Kingdom slashed output by 800,000 barrels per day in March this year due to oversupply. Consumers have urged the exporters’ group to pump more crude to put a cap on oil, which surged to more than $127 a barrel this month, its highest level in 2 1/2 years amid unrest in North Africa and the Middle East.
“We believe Saudi Arabia now requires oil at $92 a barrel to break even fiscally, up from $60 a barrel in 2008, on higher post-Arab Spring spending,” Deutsche Bank oil analyst Paul Sankey wrote in a research note earlier this month.