Monday , June 14 2021

Saudi Arabia is reducing oil exports

Saudi Energy Minister Khaled Al-Falah said his country would reduce oil output while falling prices would cause a market collapse in 2014.

"The oil exports from the (Saudi) kingdom in December will be 500,000 barrels a day lower than in November," Falah told reporters in Abu Dhabi at a meeting of the Organization of Petroleum Manufacturers (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 early to talk about a particular action," Khaled Al-Falah told a question about a possible reduction in production to stop prices from falling.

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

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

Brent crude fell below $ 70 on Friday for the first time since April, and the price of a barrel of oil in the US is below $ 60, the ninth month of falling prices.

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

The recent drop in oil prices is mainly due to a drop in demand from China, the largest importer whose economic growth is slowing, said Kyle Birch, an analyst with the Economist Intelligence Unit.

On the other hand, the US sanctions against Iran, which are threatened by reducing world supply and raising prices, have gone less than expected.

From the point of view of the sanctions, the United States, Moscow and Ratz – two of the three largest producers in June, changed their production restrictions to produce more oil and offset the decline in Iranian exports.

Riyadh 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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