Monday , September 26 2022

Russia and Saudi Arabia are trying to resist oil output


Saudi Arabia has opened the door to break a raw production despite the fact that Russia says that any surplus supplies are short-term, giving two world's largest producers contrary to oil policy.

Khalid al-Falih, the king's energy minister, said Sunday, the state economy, Saudi Aramco, would supply 500,000 barrels a day less in December compared to November because of the demand is.

"December's nominations are 500,000 barrels less than November, so we see that part of it ends at the end of the year," said Mr Falih in Abu Dhabi before a meeting of Opec and countries Outside the cartoon that monitors oil production.

Saudi Arabia has increased the production of 1m b / d oil after pressure from US president Donald Trump who called on Opec to help compensate for losing exports from Iran after re-imposing US penalties against its oil sector .

But even as the United States asked for support and that the kingdom promised to increase the products, it gave waivers to large customers of Iran's oil such as India and China, creating concerns about too much oil market.

This stimulated a reduction in international Brent oil prices below $ 70 per barrel on Friday of more than $ 85 per barrel in October.

Saudi Arabia has been worried about too much market supply that is significant in slowing down the global economy and demand for oil.

Oil analysts as well as Iran oil officials have said that at least 1m of a barrel would be needed a day to make the market a balance.

The world's largest oil exporter interferes with the prices of a new crisis crash that could have an impact on its ambitious social and economic reform program.

But Russia, the kingdom partner in efforts to balance the market on Sunday said that it was not clear if the market would be overstated next year, with any imbalance caused by seasonal factors.

People with information about the Moscow Times Financial Times policy reported last week that the country's oil production companies aim to increase production by 300,000 b / d.

Saudi Arabia and Russia have co-operated on an oil policy since 2016 when joint efforts to cut production into the decline of multi-tier oil came to an end. In June this year, countries agreed to relax oil curbs to mitigate an increase in oil prices.

The official press release from producers who met on Sunday to monitor the market's essentials said 2019 "[pointed] to increase supply supply than global requirements ".

Representatives from oil exporting countries, who had previously gathered before the official ministerial meeting in December, stated that "the reduction of global economic growth prospects" could have an impact on global oil demand next year.

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