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This content was published on November 26, 2018, 12:29
By Rania El Gamal
Saudi Saudi Arabia has reduced crude oil production to a record high in November, the industry source said on Monday after the US government pressured the kingdom to prevent it from doing so. reduction in pumping at the meeting that OPEC will have next week.
The source said oil production in Saudi Arabia reached 11.1 million barrels per day (bpd) to 11.3 million bpd in November, although the average volume of November will not be clear by the end of the month.
These levels represent an increase of nearly 0.5 million bpd – equivalent to 0.5% of world demand – since October and over 1 million bpd compared to the volume at the beginning of 2018 when Riyadh reduced its production together with its OPEC partners.
Saudi Arabia has agreed to a sharp upward adjustment in oil production at the demand of consumers, including the United States and India, to cool prices and face a supply shortage after the Donald Trump government imposed sanctions on Iran.
But the measure turned out to be counterproductive for Riyadh after Washington imposed less severe sanctions than planned in Tehran. This raised fears of a surplus, and Friday's prices collapsed below $ 60 a barrel from the $ 85 level reached in October.
Sources from the Saudi oil industry have indicated they want prices to remain above $ 70. This month, the Saudi energy minister said the world oil supply could exceed demand by more than 1 million bpd by 2019, which would require OPEC intervention.
OPEC will consider a production cutback agreement when it meets next week, but Trump has once again urged Saudi Arabia not to cut back on pumping.
Trump congratulated Monday for lowering cylinder prices and compared this drop with a significant tax cut for the US economy, writing on Twitter "(It's) so big that the price of oil is shrinking (thanks to President T)."
(Reporting by Rania El Gamal, edited in Spanish by Janisse Huambachano)