Sunday , May 22 2022

Saudi Arabia is discussing a proposal to cut oil pumps


Saudi Arabia discusses a proposal that may lead OPEC and other oil producers to reduce supply by up to 1 million barrels per day, told two sources to Reuters on Friday, at a time when the world's largest oil exporter Faces with a fall in prices.

The sources say that some agreements will be due to factors such as the amount of Iranian exports after the US imposed sanctions against Tehran but granted Iran's largest oil customers. an exception to continue buying it.

(Also read: Oil Director Manuel Quevedo meets Saudi prime minister Khalid Al Falih)

Riyadh was surprised by the exemptions granted to customers such as China and India, a measure affecting oil prices, at least three sectors and OPEC sources told Reuters.

now Saudi Arabia wants to prevent price falls, traded at less than $ 70 a barrel on Friday, and are spearheading discussions for reduce oil production next year, according to the same sources.

According to an agreement expiring at the end of the year, OPEC and non-OPEC producers agreed to reduce supply by approximately 1.8 million barrels per day (BPD).

However, the producers ended more, partly due to unexpected losses in Venezuela, Libya and Angola, so in June they agreed to limit the cuts to the initially agreed level, which means recovering about 1 million barrels. of the offer.

OPEC and its allies will meet in Vienna from 6th of December to 7th to decide production policy for 2019.

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