The world’s number one oil exporter, Saudi Arabia, is planning to scale back oil production at the end of the summer. The latest reports suggest that Saudi Arabia will reduce its crude output to 10.3 million barrels a day, cutting around 300,000 barrels per day. According to reports, the country will slow its record-breaking output in response to domestic demands, as the need for air conditioning subsides in September. The Street’s Jim Cramer said that Saudi Arabia’s reductions will have a dramatic impact on the price of oil, despite the potential Iran deal on the horizon. Cramer said the cutback will make it ‘unlikely we will visit the $43 level again. We all know that our production has already peaked and I expect it to decline pretty precipitously.’ He added that the latest developments provide ‘the missing piece of the puzzle, that should cause oil to trade at these levels and not go much lower.’ Saudi Arabia currently produces around 10 percent of the world’s crude oil.
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