Saudi Arabia's Oil Strategy

Saudi Arabia has been producing over ten million barrels of oil daily to maintain its market position despite declining demand. This strategy has led to a significant drop in income, forcing the country to use its savings and foreign reserves. The International Energy Agency predicts a sharp decline in OPEC's annual revenues. Market speculation against the Saudi riyal has increased, reflecting concerns over the currency's stability. With oil prices around $40, the extent to which Saudi Arabia will continue this approach remains uncertain.

What has been Riyadh's strategy in response to waning oil demand?

• Reduce oil production

• Increase oil prices

• Continue high levels of oil production

• Seek alternative energy sources

What is the projected annual revenue for OPEC according to the International Energy Agency?

• $300 billion

• $550 billion

• $750 billion

• $1 trillion

What financial measures has Saudi Arabia taken to support its currency?

• Tapped into savings and foreign reserves

• Increased oil production

• Raised interest rates

• Devalued the riyal

What has been the market reaction to the Saudi riyal's exchange rate?

• Decrease in foreign investments

• Stability in the exchange rate

• Speculation against the currency peg

• Increased confidence in the riyal

What is the current price range of oil that raises questions about OPEC's strategy?

• $40

• $60

• $50

• $30