Saudi Arabia's Oil Price Strategy: Risks and Rewards

Oil prices fell back on Tuesday after a short-lived rally following Saudi Arabia's decision to cut production by a further 1 million barrels per day. Economic concerns outweighed the impact of further OPEC+ cuts, with U.S. and Chinese manufacturing data disappointing so far this year. However, the driving season has the potential to boost the oil demand outlook. Traders are unconvinced about the importance of any further cuts from OPEC+ as worry about the state of the global economy prevails.