Saudi Arabia to Reduce Big Spending on Oil Sector, Goldman Says

BREAKING NEWS

Saudi Arabia to Reduce Big Spending on Oil Sector, Goldman Says

[Image: Saudi Arabian flag waving in the wind]

In a significant move, Saudi Arabia has decided to slash its massive spending on the oil sector, a move that is expected to have a profound impact on the global energy market, according to a report by Goldman Sachs.

[Image: Oil pumps and infrastructure in Saudi Arabia]

The Saudi government has been facing mounting pressure to diversify its economy and reduce its dependence on oil exports, which account for over 70% of its revenue. In response, the government has announced plans to reduce its spending on the oil sector by $15 billion in the next three years, according to a report by Bloomberg.

[Image: Saudi Arabian Finance Minister Mohammed Al-Jadaan]

The move is seen as a bold step towards reducing the country’s vulnerability to fluctuations in the global oil market. The Saudi government has been grappling with a budget deficit of around 7% of its GDP, which has put a strain on its finances.

[Image: A map of Saudi Arabia with oil wells and infrastructure]

Goldman Sachs has stated that the reduction in spending will lead to a decline in Saudi Arabia’s oil production capacity, which is currently around 12 million barrels per day. The firm expects the country’s oil production to decline by around 500,000 barrels per day by the end of 2023.

[Image: A graph showing the decline in oil production]

The reduction in oil production is expected to have a significant impact on the global energy market, leading to an increase in oil prices. This is likely to benefit oil-producing countries such as Russia and the United States.

[Image: A graph showing the rise in oil prices]

The move is also seen as a major shift in Saudi Arabia’s strategy, which has historically relied heavily on oil exports to drive its economy. The country is now looking to diversify its economy and develop other sectors such as manufacturing and tourism.

[Image: A picture of the Red Sea coast in Saudi Arabia]

In a statement, the Saudi Ministry of Finance said that the country was committed to achieving a balanced budget by 2024, and that the reduction in spending was a necessary step towards achieving this goal.

[Image: A picture of Saudi Arabia’s Finance Minister Mohammed Al-Jadaan]

The news has sent shockwaves through the global energy market, with oil prices rising sharply in response to the announcement. The move is expected to have far-reaching consequences for the global economy and energy market, and is being closely watched by investors and policymakers around the world.

KEY TAKEAWAYS

• Saudi Arabia plans to reduce its spending on the oil sector by $15 billion over the next three years
• The reduction is expected to lead to a decline in oil production capacity by around 500,000 barrels per day by the end of 2023
• The move is seen as a major shift in Saudi Arabia’s strategy, which has historically relied heavily on oil exports to drive its economy
• The reduction in oil production is expected to lead to an increase in oil prices
• The move is expected to have far-reaching consequences for the global energy market and economy

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• The impact of Saudi Arabia’s reduced oil production on the global energy market
• Saudi Arabia’s plans to diversify its economy and reduce its dependence on oil exports

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