Friday , September 30 2022

Saudi Arabia reduces oil exports


Saudi energy minister Haled Al-Faleh said his country would reduce crude oil production, while falling prices will cause fears that a market collapse will be in 2014.

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

On the other hand, he said that there is still no "consensus" of the major producing countries on the overall decline in production.

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

"It's too soon to talk about a particular action," Haled al-Faleh said in a question about a possible cut in production to halt falling prices.

His Russian counterpart, Alexander Novak, said it was necessary "to analyze in detail the market situation, to analyze the implementation of the agreements (which are in force)" and warned that before "deciding what to do in continue, cooperation to stabilize the market continued ".

Between the increase in production in some major countries and the fear that the drop in demand, oil prices fell by nearly 20% in one month, as they peaked at the beginning – the highest level in the last four years.

The crude price of Brenta oil fell below the $ 70 threshold for the first time in April, and the price of an American oil barrel is below $ 60, which is the new month of falling prices.

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

The recent fall in oil prices is mainly the result of a fall in demand from China, the largest importer whose economic growth is slowing down, said Kailin Birch, an analyst at the Economist Intelligence Unit.

On the other hand, US sanctions against Iran, which have been threatened with global supply cuts and rising prices, have gone less than expected.

In terms of sanctions, the United States, Moscow and Riyadh, two of the three largest producers, revised the production cutback agreement in June to extract more oil and offset the decline in Iranian exports.

Riyadh has increased production from 9.9 million barrels per day in May to 10.7 million in October, the Saudi energy minister said.

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