47% Believe Saudi Arabia’s Oil Supply Reduction To Stabilize Markets and Oil Prices

Saudi Arabia’s reduction in oil output aims to stabilize the global economy amid uncertainties. However, experts believe that the primary objective is to increase oil prices.

Saudi Arabia’s oil supply cuts come after previous reductions implemented by OPEC+ in April. The price fluctuations in oil and geopolitical tensions have led to an energy and economic crisis in several countries. As a result, consumers may experience higher fuel prices, adding to the challenges faced in already unstable economic climates. The future of oil cuts and their impact on global economies remain uncertain.

To gauge public sentiment on this matter, Real Research, an online survey app, has launched a survey on Saudi Arabia’s decision to cut oil supply to gather insights from the public.

Highlights:

• 39.58% of respondents were neutral on Saudi Arabia’s decision to cut oil supply.
• 40.66% remained unsure about the future of oil prices considering Saudi’s decision.
• 37.87% of respondents eagerly anticipated Saudi Arabia’s oil supply cuts.

The Kingdom of Saudi Arabia announced on May 4, 2023, that it would cut oil supply by one million barrels daily in July. The move was seen as an attempt to prop up oil prices, which had declined recently. OPEC+, the group of oil-producing countries that includes Saudi Arabia, also agreed to extend earlier production cuts through the end of 2024.

We asked our respondents if they were aware of the Saudi oil cut. Of the 10,000 respondents, 69% said they were aware of the cut, while 31% said they were not aware.

We inquired about our respondents’ opinions on whether they thought Saudi Arabia’s approach would be successful in its efforts to stabilize markets and raise oil prices.

The survey results indicated that nearly half of the respondents (46%) believed that it would probably be successful, followed by 41% who said definitely, 9% who said probably not, and 3% who said definitely not.

Saudi Arabia Announces Temporary Oil Supply Cut, Potential for Extension

Saudi Arabia said the oil supply cut would likely last a month but could be extended. The decision to extend the cut will depend on market conditions at the time.

If the market is still weak, Saudi Arabia may decide to extend the cut to support oil prices. However, if the market improves, Saudi Arabia may end the cut early to increase its market share.

It is still too early to say what will happen. However, we inquired about respondents’ opinions on this. Most respondents (53%) said it would be extended somewhat likely, followed by 31% who said highly likely, 13% who said somewhat unlikely, and 3% who said highly unlikely.

Potential Effects on Daily Consumers

Next, we asked the survey respondents whether Saudi Arabia’s OPEC+ cuts in oil production would affect everyday consumers. Results revealed that 46% of respondents stated probably, 29% stated definitely, 20% stated probably not, and 4% stated definitely not.

Similarly, we asked the respondents in what ways the cuts would affect daily consumers. 39% said it would affect them somewhat positively, and 28% said it would affect them positively.

In contrast, 26% said it would affect them somewhat negatively, and 7% said negatively.

Implications of Saudi Arabia’s Significant Oil Supply Cut

Saudi Arabia’s decision to cut oil supply by one million barrels a day is a significant move that could have a major impact on the global oil market and the global economy.

On the one hand, the cut could help stabilize oil prices, which have been declining recently. On the other hand, the cut could also lead to higher oil prices in the long run.

Our following survey poll asked the respondents about their stance on Saudi Arabia’s oil supply cuts of one million barrels per day. The majority of the respondents (40%) remained neutral, whereas 32% opposed it and 28% supported it.

Next, the survey poll inquired whether respondents were optimistic or pessimistic about the future of oil prices. 31% were pessimistic, and 28% were optimistic. Meanwhile, the majority of respondents (41%) remained unsure.

Lastly, the survey asked whether Saudi Arabia’s oil supply cut was something the respondents anticipated. The results indicated that 38% of the respondents said yes, 30% said no, and 32% remained uncertain.