Friday , May 27 2022

Saudis wants to reduce the world's oil production of 1 million caps / days


Saudi Arabia announced Monday that it is essential to reduce the world's oil production by 1 million caps per day (bd) in order to balance the market. This announcement takes place in the context of falling price prices, which triggers aggravating fears and prices, as in 2014.

"The technical analysis we have studied yesterday (Sunday) shows that we should reduce 1 million day-to-day balance to market balance," said Saudi Energy Minister Khaled Al Faleh, to a meeting of members countries and non-members of the Institute of Petroleum Exporters Countries (OPEC) in Abu Dhabi.

Earlier in the day, Faleh had announced that Riyadh, the largest producer in the world, would break its own production and cut its exports of 500,000 barrels a day in December of November.

Saudi Arabia, who has recently hosted a series of projects to overcome its excessive oil dependency, has suffered a lot of money in recent years following the acquisition of 2014 quotes.

In response to the latest releases of Riyadh, lightweight light lights (WTI), the benchmark oil in the United States, and the North Sea Brent bar, a European benchmark, rose more than a dollar on Monday.

Due to the growing production of some of the main countries producing and falling demand fears, oil prices lost about 20 per cent in one month after reaching four year highlights in early October.

Brent barrel was sold under $ 70 on Friday for the first time since April. West Texas Intermediate (WTI) was below $ 60 – low in nine months.

Despite signs of slow demand, Saudi Arabia, Russia, Kuwait and Iraq have increased their recent production of products, and the US, the shale oil.

The official decision on reducing world production will be taken during a meeting scheduled for 5 December in Vienna between non-members of OPEC and 15 members of the organization, said the Saudi minister.

– & # 39; New strategies & # 39; – –

Before this closing date, producers will continue to be ancillary to market signals. They may vary, but "if we have to cut a production by 1 million barrels a day, we will do that," said the Minister for Energy in Saudi.

His Russian counterparts, Alexander Novak, were more obstructive when telling Bloomberg on Monday that he prefers not "focusing solely on falling output," but to "see how he" s The market is evolving ". "Our ultimate goal is stability," he said.

On behalf of the United Arab Emirates, Energy Minister Suheil al Mazruei said a new strategy was "necessary" and would not increase production.

OPEC Member of Iraq "agrees with any decision in favor of the stability of oil markets and return to balance," said spokesman for the Ministry of Oil, So Jihad, told AFP.

Recent drop-down prices are mainly due to the lower demand from China – the largest importer in the world – and the expected impact of US penalties on the Iranian energy sector, which has threatened to reduce the supply of the world and raise prices.

With the hope of these penalties, Moscow and Riyadh, two of the world 's largest producers, changed their June production agreement to remove more and compensate for leakage in Iran's exports.

On Sunday, oil makers said the world's oil supply will be more than demand next year by calling for "new strategies" based on production modifications.


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