Saudis Have A Vision

Saudi Vision 2030 is the vision of Saudi Crown Prince and Prime Minister Mohammed bin Salman (MBS). He wants to diversify the economy of his country. Saudi Arabia’s sovereign wealth fund aims to spend $40 billion a year on the domestic economy—including the construction of Neom, a futuristic city in the desert with an estimated price tag of $500 billion. By some estimates that requires that the price of oil remains around $100 per barrel. It rose over $96 today, up 33% since mid-June (chart).

The rally has been attributable to voluntary production cuts by Saudi Arabia of 1.0mbd and 0.3mbd by Russia during the summer. On September 5, they both extended their cuts by another three months.