The fund forecasts that Saudi oil production will reach 10 million barrels a day by early 2025, from the current nearly three-year low of 9 million barrels.
The International Monetary Fund (IMF) expects that OPEC and its partners will begin a gradual increase in oil production from July. Bloomberg reported this on Sunday, April 21.
This, as the publication points out, should return Saudi Arabia to the ranks of the fastest growing economies in the world.
“We expect the full lifting of restrictions to take place in early 2025,” said Amin Mati, the head of the lender’s mission to the kingdom, in an interview in Washington, where the IMF and World Bank are holding of their spring meetings.
The IMF expressed optimism about Saudi Arabia’s economy, which contracted last year after the country led OPEC+ in partnering with Russia on production cuts that led to lower supplies and higher oil prices.
“In 2022, record oil production contributed to Saudi Arabia’s fastest economic growth among the G20 countries,” the publication recalls.
In particular, the growth rate of the world’s largest crude oil exporter is expected to increase from 5.5% to 6% next year, second only to India among the world’s largest economies, according to the latest IMF forecast released this week .
The fund forecasts that Saudi Arabia’s oil production will be 10 million barrels per day by early 2025. However, Saudi Arabia says its production capacity could reach 12 million barrels per day.
“With the situation in the Middle East worsening and oil prices surpassing $90 per barrel for the first time in months, OPEC and its allies will meet on June 1. Some analysts believe the group may begin to ease restrictions, while sacrificing sales volume to support In the market, Saudi Arabia may begin to increase oil production to overcome years of budget deficits, especially since the current price of crude oil is below still at the level necessary to balance the government’s budget,” the Bloomberg article said.
Let’s recall that Russia’s seaborne oil exports increased by $50 million to their highest level in 2024 – $1.66 billion per week.
Russia’s budget revenues from oil and gas in March 2024 almost doubled compared to the same period in 2023 and by 38.3% compared to February.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.