Oil as an aggressive rescue: there is no alternative

Oil as an aggressive rescue: there is no alternativeIn 2016, Saudi Arabia announced the launch of the Vision 2030 program to reduce the country's dependence on oil, diversify the economy, and develop medicine, education, recreational infrastructure and tourism. Today, politicians and analysts do not even remember this program. The Kingdom's economy is as heavily dependent on oil as it was seven years ago.The share of oil in the country's exports is more than 75%. This dependence is not so bad as long as oil prices are high. Saudi Arabia posted its first budget surplus since 2013 in 2022, inflation looks moderate, and unemployment is declining.Riyadh has imposed a 1 million bbl self-sustained production cut  in addition to restrictions passed by OPEC+  to bolster oil markets amid a volatile economic backdrop. The Kingdom is expected to extend this tactic through September.The policy of supporting high prices for strategic raw materials by cutting production looks risky, given the risks of a global recession. But these risks are likely to be long-term: according to Bloomberg, the average price of Brent oil by the end of the current year will be about $80 per barrel, which will allow the Saudis to receive a budget deficit of about $3.2 billion (equivalent to 0.3% of GDP).However, the ambitious economic and social transformation planned by Crown Prince Mohammad bin Salman calls for much higher prices, in the $90 zone and up.The core members of the OPEC+ alliance will hold an online meeting tomorrow to assess oil market conditions. An official statement is unlikely, but private comments from individual figures are worth studying.A full-fledged OPEC+ meeting of 23 countries is scheduled for the end of November, so the Saudis still have time to adapt the global market to suit their goals.Profits to yall!#ForexChief #opec #forexnews #StopLoss #stocks #market #profit #Traders #brent #wti