Oil prices to rise after Saudi Arabia announces deep production cuts

MAHA EL DAHAN

SAUDI Arabia will make deep production cuts in July as part of a broader output-limiting OPEC+ deal as the group faces flagging oil prices and a looming supply glut.

Saudi Energy Minister Prince Abdulaziz said the cut of 1 million barrels per day (bpd) by Riyadh could be extended beyond July if needed. a 315 per cent increase in demand for installers over the last three years.

"This is a Saudi lollipop," he said. OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, reached a deal on output policy after seven hours of talks and decided to reduce overall production targets from 2024 by a further total of 1.4 million barrels per day.

However, many of these reductions will not be real as the group lowered the targets for Russia, Nigeria and Angola to bring them into line with their actual current production levels.

OPEC+ pumps around 40 per cent of the world's crude, meaning its policy decisions can have a major impact on oil prices.

By the next decade, Solar Energy UK is forecasting that 60,000 people will be employed within the solar sector – up from the 7,000 recorded back in 2020.

DEMAND ON THE RISEBUT CAN SUPPLY KEEP PACE?

But with roughly 23m homes still bereft of any rooftop insulation, even more experts will be needed to meet rising customer demand.

Another hurdle is planning and grid connections for smaller scale installations on shops and businesses that don’t have the same rights as households but want similar set-ups.

Adam Bell, ex-head of energy at BEIS, argues that when it comes to installations,

He said: “The government took a step forward earlier this year through new rights for non-domestic properties. However, there are still barriers to installing solar domestically depending on the size of the installation and local grid companies' ability to service bigger installations.”

Funding, skills and planning are challenges we can resolve – and with other factors likely to emerge in the coming years such as securing key minerals like copper, cobalt and nickel, and bolstering supply chains, it is vital that issues in our control are dealt with If the UK wants to embrace a rooftop revolution it needs to act now, harness the growing enthusiasm of the British public and carry the momentum through to meet our supply security and net zero goals.