OPEC reached its biggest-ever production cut agreement with oil countries, including the United States, in April, but the move has not stopped oil prices from falling. In May, Saudi Arabia cut production further on the basis of agreement on crude oil. After that, Saudi Arabia and Russia also communicated bilaterally.It is clear that this cut is not in Saudi Arabia's international interests, and Saudi Arabia will further lose market share because of this cut. Russia and the United States will benefit from the cut. This time Saudi Arabia's cut is likely to be the will of the United States. The oil market itself is not a pure commodity market, but a highly politicized one. The degree of politicization was further enhanced when the United States became an energy exporter as it became self-sufficient in energy. As a country with medium national strength, Saudi Arabia may become a victim in the increasingly politicized oil market if it takes wrong actions.The cut will boost oil prices and hurt net importers of crude oil. Major consuming countries, especially China, can take the opportunity of the politicization of the oil market to participate in the game and protect its own national interests.
