Wednesday , December 8 2021

Saudi Arabia reduces oil exports


Saudi energy minister Haled Al-Faleh said his country will reduce oil production, while falling prices will cause the fall of the market in 2014.

"Oils of the Kingdom (Saudi) oil in December will be 500,000 barrels a day lower than in November," said Faleh to reporters in Abu Dhabi at a meeting of oil producers' organization (OPEC) and other countries.

On the other hand, he said there is still no "consensus" of major producer countries on the total reduction in production.

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

"It's too early to talk about specific actions," said Haled al-Faleh in question about a possible breach in production to prevent a decline in prices.

Russia's referee, Alexander Novak, said "analyzing the situation on the market in detail, to analyze the operation of the agreements (which is in force)" and warned that before "deciding what to do next, co-operation for stabilization of the market has continued ".

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

The price of Brenta's crude oil fell below $ 70 on Friday for the first time since April, and the cost of a barrel of US oil is below $ 60, which is the ninth month of falling prices.

Despite signs of slowdown in demand, Saudi Arabia, Russia, Kuwait and Iraq have recently increased their crude oil production, and the United States has light oil oil.

Recent oil prices are falling down as a result of a decline in demand from China, the largest importer whose economic growth is slowing down, says Kailin Birch, analysts at the Intelligence Economist Unit.

On the other hand, US penalties against Iran, who have been under threat to reduce global supply and raise prices, have passed with fewer results than expected.

In terms of penalties, the United States, Moscow and Riyadh – two of the largest three producers, in June, revised their production restriction agreement to remove more oil and offset the decline in Iran's exports.

Saudi increased the production of 9.9 million barrels a day in May to 10.7 million in October, said Saudi energy minister.

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