Monday , January 18 2021

Saudi Arabia reduces oil exports

Saudi Arabian energy minister Haled Al-Faleh said his country would cut oil production, while falling prices would cause fear of the collapse of the market by 2014.

"Exporting oil from the Saudi Kingdom in December will be 500,000 barrels a day lower than in November," Fahleh told reporters in Abu Dhabi at a meeting of OPEC and other countries.

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

There should be no joint decision in Abu Dhabi, several ministers said, but OPEC should look in December in Vienna.

"It is too early to talk about a specific action," Haled al-Faleh said in a question about a possible drop in production to stop the fall in prices.

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

Between the increase in production in some major countries and the fear of falling demand, oil prices fell by almost 20% in one month as they reached the top in the beginning – the highest level in four years.

The price of Brenta crude oil fell below $ 70 on Friday for the first time since April and the price of an American oil barrel 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 oil production and the United States has shale oil.

The recent decline in oil prices is mainly due to a decline in demand from China, the largest importer whose economic growth is slowing down, said Kailin Birch, analysts at the Economist Intelligence Unit.

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

In terms of sanctions, the United States, Moscow and Riyadh – two of the three largest producers in June, revised the agreement to cut their production to export more oil and offset Iran's export cuts.

Riyadh increased production from 9.9 million barrels a day in May to 10.7 million in October, Saudi Arabian Energy Minister said.

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