Thursday , July 29 2021

Saudi Arabia is in negotiations to reduce oil production after US-exempt buyers. UU

Saudi Arabia is discussing a proposal that could lead the oil-producing nations of OPEC and the Opec to reduce production to a million barrels per day, according to sources said on Sunday in Reuters as the world's largest oil exporter with the fall of merchandise prices

The sources said that any such agreement would depend on factors such as the level of Iranian exports after the United States imposed sanctions on Tehran but granted concessions to Iran's largest oil buyers to continue to buy.

Saudi Arabia was surprised by the consumer-like exemption such as China and India, a measure that hit oil prices, at least three industry sources and the OPEC told Reuters.

Saudi Arabia now wants to act to prevent a further fall in prices, which dropped below $ 70 a barrel on Friday and is leading the discussions about the cut in production next year, the sources said.

According to an agreement that will expire at the end of the year, OPEC and the external producers agreed to stop production at around 1.8 million barrels per day.

However, the producers ended up diminishing even more, partly due to unexpected interruptions in Venezuela, Libya and Angola and agreed in June to limit cuts to agreed levels, which means restoring about 1 million bpd in production.

OPEC and its allies will meet in Vienna on 6 and 7 December to decide on the production policy for 2019.

"There is a general debate about this, but the question is how much it should be reduced by the market," a source said before a meeting of the monitoring committee in Abu Dhabi on Sunday, attended by leading producers Saudi Arabia and Russia.

Saudi Arabia wants to put at least one floor under oil prices, and no one wants a free fall in prices, "added the source.

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