Saudi Arabia falls first on the battlefield of oil war

Saudi Arabia could not stand the declared level of competition with Russia and the United States. The Kingdom was the first to surrender in the oil war for the market.  Saudi Arabia fails to stand competition On Monday, May 11, Saudi Arabia announced that it:     tripled its VAT, having raised it to 15%,     reduced spending on large investment projects by about $26 billion,     canceled the allowance for natural persons to bring their income to the level of the living wage, which has been effective in the kingdom since 2018. This allowance cost the budget about 13.5 billion dollars a year,     obliged Saudi Aramco to further reduce oil production under the OPEC+ deal in June of this year by another 1 million barrels per day - up to 7.5 million barrels per day. After the collapse of the first OPEC+ deal in March, the Saudis quickly increased their total production to 12 million barrels with a view to quickly gain an additional market segment. The trick did not work, and oversupply against the backdrop of declining demand in the midst of the coronavirus pandemic caused oil prices to collapse with futures sliding down into the negative zone. The new OPEC+ deal began to operate on May 1 of this year, and it provides for a reduction in oil output for all parties.