Saudi Arabia’s economy rose by nearly 10 percent in the first three months of this year. The news comes as oil prices rise around the world after the European Union proposed phasing out Russian oil and gas from the Continent.
The world’s largest trading bloc intensified its sanctions against Russia this week for its ongoing war in Ukraine. It led to the global benchmark for two-thirds of the world’s oil, Brent, to go up 3.16 percent. n the US, the gauge that tracks crude, West Texas intermediate, saw prices go up to 3.26 percent higher.
Chief market analyst at Avatrade Naeem Aslam said that oil prices are currently in recovery mode because investors are eyeing the crude oil inventory data, which signals overall a tighter supply. Aslam said that traders are also monitoring the potential sanctions coming to Russian oil by the European Union.
Despite demand concerns, OPEC+ said it will still agree to another small increase in its production targets for June. OPEC+ ministers are set to meet tomorrow and are expected to agree to raise their production targets.
The Kingdom of Saudi Arabia saw a 9.6 percent rise in its GDP in the first three months of 2022, compared to the same period in the year prior.
Saudi Arabia is the largest oil producer in OPEC and is also the world’s largest oil exporter. The Kingdom’s oil activities increased by a huge 20.4 percent since last year.
Energy prices have risen around the world, making it the largest rise since the 1973 oil crisis. The Russian war in Ukraine altered patterns of trade, production, and consumption, which has directly led to a record GDP growth.
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