Saturday , January 23 2021

Major oil states discuss production cuts in Abu Dhabi



On the other hand, US sanctions against Iran, which threatened to reduce global supply and increase prices, showed less serious than expected.
In anticipation of US sanctions, Moscow and Riyadh, two of the world's three largest oil producers, have changed the agreement to restrict production so that they can extract more and compensate for cuts in Iranian oil exports.
Since December 2016, the organization of the Petroleum Exporting Countries (OPEC), the largest is Saudi Arabia, and other oil producers without OPEC have agreed to reduce the production of black gold.
During the meeting of the joint ministerial committee to follow up on the agreement on Sunday, they intend to discuss reducing their production.
Riyadh increased its production from 9.9 million barrels of oil per day in May to 10.7 million barrels in October, said Saudi oil minister Khalid al-Falih.
Fouad Razaq Zadeh, an analyst at Forex.com, said officials would probably discuss the need to return to 100 percent respect for the deal after Washington decided to release eight Iranian oil importers from the consequences of sanctions.
"Prices are falling, while production of top producers such as Saudi Arabia, Russia and the United States continues to rise, exceeds the amount of Iranian barrels" lost by the market.
"If producers fail to show their intention to reverse the latest production increase, oil prices could fall further," warned analysts at Commerzbank.
Oil ministers from Russia, Saudi Arabia, Kuwait, Venezuela and the United Arab Emirates attend the Sunday meeting.
No decision is expected in Abu Dhabi on Sunday, but rather recommendations before an OPEC meeting scheduled for December in Vienna.


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