Wednesday , May 18 2022

Saudi Arabia reduces oil exports


Saudi energy minister Haled Al-Faleh said his country will reduce oil production, while falling prices will cause fear of a market collapse as 2014.

"Exports of oil from (Saudi Arabia) in December will be 500,000 barrels a day lower than November," Faleh told reporters in Abu Dhabi at a meeting with the oil producer organization (OPEC) and other countries.

On the other hand, he said that there is still no "consensus" between major producer countries about the overall decline in production.

There should be no joint decision in Abu Dhabi, several ministers said, but OPEK should consider December in Vienna.

"It's too early to talk about a certain measure," Haled al-Faleh said, a question of a possible production decline to stop the price decline.

His Russian counterpart Alexander Novak said it is necessary to "analyze the situation on the market in detail, to analyze the implementation of the agreements (which apply)" and warned that before "deciding what to do next, the cooperation for market stabilization has continued".

Between the production increase in some major countries and the fear of falling demand, oil prices fell by almost 20 percent in a month, when they reached a peak at the beginning – the highest level of four years.

The Brenta crude oil price fell below $ 70 on Friday for the first time since April, and the price of a piece of American oil is below $ 60, which is the ninth month with falling prices.

Despite signs of a slowdown in demand, Saudi Arabia, Russia, Kuwait and Iraq have recently increased their oil production, and the US has oil shale oil.

The recent decline in oil prices is primarily a result of a decline in demand from China, the largest importer whose economic growth slows down, says analyst Kailin Birch at Economist Intelligence Unit.

On the other hand, US sanctions against Iran threatened to reduce global supply and raise prices have gone less than expected.

From the sanction perspective, the US, Moscow and Riyadh – two of the three largest producers, in June, their production limitation agreements were revised to extract more oil and compensate for the decline in Iranian exports.

Riyadh increased production from 9.9 million barrels per day in May to 10.7 million in October, said the Saudi energy minister.

Source link