Sunday , January 24 2021

Saudi Arabia reduces oil exports

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

"The oil exports of the Kingdom (Saudi) in December will be 500,000 barrels per day less than in November," Faleh told reporters in Abu Dhabi at a meeting of the oil producer organization (OPEC) and other countries.

On the other hand, he said that there is still no "consensus" of the main producing countries about the total decrease in production.

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

"It's too early to talk about a particular action," Haled al-Faleh said a question about a possible cut in production to stop the decline in prices.

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

Between rising production in some major countries and fear of falling demand, oil prices dropped almost 20 percent in a month, as they reached a peak at the beginning, the highest in four years.

The gross crude oil price dropped below $ 70 on Friday for the first time since April and the price of a barrel of US oil is less than $ 60, which is the ninth month of falling prices.

Despite signs of a slowdown in 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 particularly the result of a decline in demand from China, the largest importer whose economic growth is declining, said Kailin Birch, analysts at the Economist Intelligence Unit.

On the other hand, the American sanctions against Iran, that were threatened to reduce the global supply and to increase the prices, happened with less consequences than expected.

From the perspective of the sanctions, the United States, Moscow and Riyadh – two of the three largest producers, in June, revised their production limitation agreement to extract more oil and offset the decline in Iranian exports.

Riyadh increased the production of 9.9 million barrels per day in May to 10.7 million in October, said Saudi Minister of Energy.

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