Oil cuts extended and new taxes introduced

OPEC has decided to extend its oil production cuts for nine months, following an agreement between Saudi Arabia and Russia. This move, which began in January, involves reducing oil output by 1.8 million barrels per day, equating to 2% of global production. The agreement has led to oil prices exceeding $50 per barrel, benefiting producers financially. Additionally, Saudi Arabia will impose taxes on cigarettes and energy drinks at 100% and on sodas at 50%, expected to generate 9 million riyals annually. The GCC countries have agreed to implement these taxes, with the UAE ready to do so by late 2017. This initiative is part of a broader strategy to diversify income sources and reduce reliance on oil.

What was the main reason for OPEC's decision to extend oil production cuts?

• To support renewable energy sources

• To decrease oil prices

• To stabilize and increase oil prices

• To increase global oil production

How much is Saudi Arabia's new tax on energy drinks?

• 75%

• 100%

• 25%

• 50%

What is the expected annual revenue from Saudi Arabia's new taxes?

• 5 million Riyals

• 9 million Riyals

• 15 million Riyals

• 20 million Riyals

Which country is ready to implement the new tax by the end of 2017?

• Kuwait

• United Arab Emirates

• Saudi Arabia

• Qatar

What is the primary goal of the new taxes in the Gulf countries?

• To increase oil production

• To promote tourism

• To diversify income sources

• To reduce government spending