Friday , September 30 2022

Saudi Arabia defends oil production cuts to balance the market – Economy


"The technical analysis I looked at yesterday [domingo] shows that we need a reduction of about one million barrels a day to balance the market, "Faleh said at a conference on energy in Abu Dhabi.

The official said there was an accumulation of stocks and that "the 25 producing countries will not allow this to continue."

"The signs I sent yesterday [domingo]"means" we will do (…) what will be needed to balance the market, "Faleh said.

On Sunday, at the opening of the Abu Dhabi meeting of OPEC member countries and those who were not members of the deal, the Saudi official has already announced that his country will reduce oil production, which will lead to a decrease in exports of 500,000 barrels per day in the following month.

Between the increase in production in some of the major producing countries and the fears of falling demand, oil prices fell nearly 20% in one month, after a peak in early October, when it reached the highest level in the last four years.

Since December 2016, OPEC countries led by Saudi Arabia and other non-cartel producers such as Russia have agreed to cut oil production.

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