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Saudi Efforts to Protect Oil Producers from Shrinking Global Economic Growth

An Aramco facility (Asharq Al-Awsat)
An Aramco facility (Asharq Al-Awsat)
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Saudi Efforts to Protect Oil Producers from Shrinking Global Economic Growth

An Aramco facility (Asharq Al-Awsat)
An Aramco facility (Asharq Al-Awsat)

The Saudi government's voluntarily reducing its output to nine million barrels per day (bpd) represents significant to support the global market and protect producers and consumers, economic analysts told Asharq Al-Awsat.

The experts emphasized the importance of a unified OPEC+ decision and the voluntary production decline in line with the capabilities of many oil-producing countries.

- Market protection

Advisor and international law professor Osama al-Obaidi told Asharq Al-Awsat that the decision of the OPEC+ group seeks to protect price stability from severe fluctuations that harm producers and consumers alike.

Obaidi said the decision limits the contraction of global economic growth, noting that the extreme price fluctuation leads to a decline in oil production efficiency and consumption.

The expert noted that OPEC+ countries needed to defend their market share and achieve stability.

- Global Economy

Obaidi said that the OPEC+ policy, led by Saudi Arabia, balanced international markets and enhanced the stability of the global economy.

Saudi Arabia's efforts are essential to eliminate extreme fluctuations in the oil market to prevent a decline in global demand and support market stability and balance, said Obaidi.

He indicated that the Kingdom, with its voluntary reduction with the member states of OPEC+, succeeded in reducing price fluctuations and ensured the availability of sufficient supplies to global markets.

- Distributive justice

Economist Fahd bin Jumaa noted that appointing impartial bodies to monitor OPEC+ production is an advanced and unprecedented step that achieves fair distribution of production lines and determines the reduction transparently.

Bin Juma told Asharq Al-Awsat that Saudi Arabia's reduction of its production by one million bpd starting next July confirms the correct outlook for global markets to maintain oil stability.

- Precautionary efforts

An official source in the Saudi Ministry of Energy said that after the OPEC+ meeting, the Kingdom would implement an additional voluntary cut in its crude oil production, amounting to one million bpd, starting in July for a month that can be extended.

The Saudi production will become nine million bpd, and the Kingdom's total voluntary cut will be 1.5 million bpd.

The source explained that the Kingdom's additional voluntary cut reinforces the precautionary efforts made by OPEC Plus countries to support the stability and balance of oil markets.

In addition to extending the existing OPEC+ cuts of 3.66 million bpd, the group also agreed to reduce overall production targets from January 2024 by a further 1.4 million bpd versus current targets to a combined 40.46 million bpd.

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Presidential Election: A Crucial First Step toward Saving Lebanon from Economic Crisis

The vacant presidential seat at Baabda Palace after President Michel Aoun's term ended (Reuters)
The vacant presidential seat at Baabda Palace after President Michel Aoun's term ended (Reuters)
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Presidential Election: A Crucial First Step toward Saving Lebanon from Economic Crisis

The vacant presidential seat at Baabda Palace after President Michel Aoun's term ended (Reuters)
The vacant presidential seat at Baabda Palace after President Michel Aoun's term ended (Reuters)

Since 2019, Lebanon has faced one of its worst economic crises in modern history, affecting all aspects of life. The local currency has lost over 95% of its value, driving inflation to record levels and making goods and services unaffordable. Poverty and unemployment have surged.
Amid this, political divisions have paralyzed government action, preventing any effective response to the crisis.
The recent war with Israel added to the burden, causing huge human and material losses estimated by the World Bank at $8.5 billion. This has made Lebanon’s economic and social struggles even harder to resolve, with no president in place to lead the country.
The presidential post in Lebanon has been vacant since President Michel Aoun's term ended in October 2022, leaving the country without a leader to address growing economic and financial issues.
This vacancy has stalled government formation, making it difficult for Lebanon to negotiate with international donors like the International Monetary Fund (IMF), which demands major reforms in exchange for aid.
Choosing a new president is now a critical priority, not only to regain local and international confidence but also to begin the long-needed reforms.
One major challenge the new president will face is the reconstruction effort, which is estimated to cost over $6 billion. This is a huge financial burden that will require significant resources and effort to secure funding.
Reconstruction in Lebanon is not just about fixing infrastructure or repairing damage; it is a key test of the country’s ability to restore its role on the regional and international arena.
To achieve this, Lebanon needs a president with a clear vision and strong international connections, able to engage effectively with donor countries and major financial institutions.
Without credible and unified political leadership, Lebanon’s chances of gaining external support will remain limited, especially as international trust has been shaken by years of mismanagement and lack of reforms.
Keeping Lebanon’s deepening crises in mind, the people are hoping that electing a new president will offer a chance for economic and political recovery.
The new president, along with a strong government, is expected to rebuild trust both locally and internationally and restore political stability—key factors for stopping the economic decline and encouraging growth.
For instance, reviving Lebanon’s vital tourism sector will require better security and restoring confidence in the country as a safe place for investment.
This can only happen with political leadership that has a clear plan for reconstruction and necessary reforms.
Given Lebanon’s ongoing financial struggles, the new president’s ability to address these challenges will be critical to rescuing the country and guiding the economy toward recovery and sustainable growth.