Saudi Arabia has asked state agencies to submit proposals for cuts of at least 2...
FILE PHOTO: A car drives past the Kingdom Centre Tower in Riyadh, Saudi Arabia, November 12, 2017. Picture taken November 12, 2017. REUTERS/Faisal Al Nasser
They said the request was made more than a week ago due to concerns about the impact of the coronavirus epidemic on crude markets and ahead of the collapse of an oil output deal between OPEC and its allies on Friday. “The oil market was already down due to the coronavirus impact on demand from China, plus there were communications at the sovereign level and the Russians weren’t positive,” the source said.
The foreign ministry has already implemented a 20% cut, one of the sources said, adding that the cuts will not impact salaries but projects could be postponed and contracts yet to be awarded could be delayed.
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