Sunday , January 17 2021

Saudi Arabia reduces oil exports

Saudi Energy Minister Haled Al-Faleh said his country will cut its oil production, while falling prices will cause fear of a collapse in the market as well as in 2014.

"Oil exports from the Saudi kingdom in December will be 500,000 barrels a day lower than in November," Faleh told reporters in Abu Dhabi at the OPEC meeting and other countries.

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

There should not be any joint decision in Abu Dhabi, several ministers said, but OPEK should consider December in Vienna.

"It is too early to talk about a particular action," Haled al-Faleh said on a possible downturn in production to stop the price decline.

His Russian counterpart, Alexander Novak, said he needed "to analyze the market situation in detail, analyze the implementation of the agreement (in force)" and warned that before "deciding what to do next, cooperation on market stabilization continued".

Between the rise in production in some large countries and the fear of falling demand, oil prices fell by almost 20 percent a month, since they peaked at the beginning – the highest level in four years.

Brenta crude oil prices dropped below $ 70 for the first time since April, and US oil barrels are below $ 60, which is a nine-month decline in prices.

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

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

On the other hand, US sanctions against Iran, which have threatened to reduce global supply and raise prices, have passed less than the expected consequences.

From a sanction perspective, the United States of America, Moscow and Riyadh – two of the top three producers – revised their production restriction agreement in June to pick up more oil and offset the fall in Iranian exports.

Riyadh has increased production from 9.9 million barrels a day in May to 10.7 million in October, Saudi Minister of Energy announced.

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