RIYADH: Saudi Arabia is looking to cut off its oil supply in a desperate bid to raise prices and boost its slowing economy. The kingdom is expected to agree to painful reduction in oil output in a meeting with fellow OPEC members this week at a meeting in Vienna in the hope of reducing market oversupply and lifting prices.
Even though it would mean the country would effectively be selling less, it hopes it will receive more income through higher prices. It is the latest tactic by the Middle Eastern country to raise prices, as its economy comes under increased pressure the longer oil prices stay low. The kingdom became dazzlingly rich in its role as one of the world’s biggest oil exports, allowing the large royal family to live a decadent life of luxury, while residents received generous subsidies and paid minimal tax. But this all changed when oil prices plunged from more than $100 a barrel in 2014 to reach as low as $30 last year amid huge market oversupply.
