Experts: Saudi Arabia is a new hope of oil markets

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As global crude oil prices have hit a 10-week low on Tuesday, Saudi Arabia seems to be prospering. The experts of oilprices.com are sure: the kingdom is a new hope for those longing for an oil price rally.

In 2015 Saudi Arabia built up a large amount of crude storage levels. It let the country to step up national oil production shortly before a global supply surplus. Now that most suppliers are bound to cut back production, Saudi Arabia and OPEC have more room to export. At the same time domestic demand in Saudi Arabia is rising rapidly.

 Meanwhile experts note that the rise of domestic demand in Saudi Arabia is mostly seasonal – it is traditionally higher in summer than at any other time of the year. Hot weather makes people use air conditioners more often, increasing the crude for electricity, which also makes oil consumption higher. Last year the kingdom used a quarter of its oil production domestically.