Friday , July 30 2021

Oil producers want "new strategy" for overproduction – International

The main oil producers in the market demanded a "new strategy" on the basis of adjusting production to address the imbalance between supply and demand in the market.

At the end of a meeting in Abu Dhabi between member states and OPEC members, the producers said that in 2019, production growth in demand in the world would be higher, and therefore sonunda production assessed the options for making the necessary adjustments Üye. new strategies to balance the market.

The solution will be "options for new production arrangements in 2019", which may require new strategies for balancing the market. At the end of the meeting they made a statement.

Khalid al-Falih, the world's largest producer of energy in Saudi Arabia, said the kingdom would reduce its production by 500,000 barrels a day.

Russia, the number 2 producer in the world, said that producers will sign a new agreement to lower output.

The United Arab Emirates's energy minister, Suheil El Mazrouei, who hosted the meeting, said there should be a cut in production.

"A new strategy needs to be formulated üretim whether it is a new production segment or something else, not an increase in production," he said.

OPEC and other countries are expected to make a decision at the next meeting of other ministers in Vienna on 5 December.

Falih said they would take this opportunity to decide on the production and how much they would arrange.

Oil fell sharply – to lose one-fifth of the value – in just one month after reaching the highest price in four years in October.

Energy ministers from countries such as Russia, Om, Kuwait and Arglia were among those in the region.

Falih said that Saudi Arabia has had 10.7 million barrels a day since October.

Prior to the meeting, he acknowledged that there was no agreement on production cuts between the members of this group, and at the end of 2016, he reached a compromise which would reduce the extraction to 1.8 million barrels in order to cope with the crisis. excessive supply.

”There is still no consensus among the producers,“ he said.

– Falling price decline –

Brent's barrel was below $ 70 a month on Friday for the first time since April. West Texas Intermediate (WTI) was under $ 60 – at least nine months.

In his opening remarks, Falih said that the drop in prices "surprised us" and the sensitivity in the market shifted to the extreme supply fear of over-supply.

While Saudi Arabia, Russia and other countries have increased supply in the wake of slowing demand, the most recent decline in prices follows the US's increasing shale oil production.

There are signs that the new US sanctions on Iranian oil exports may have a weaker impact than expected.

Iler The oil supply of major oil producers, such as Saudi Arabia, Russia and the US, prices are rising much more than compensating for the loss of Iranian barrels, fazla said Fawad Razaqzada, the Forex analyst at AFP.

"Since Iranian sanctions are not as severe as initially feared, OPEC producer officials and OPEC officials may discuss the need to reduce compliance over the weekend, or cause further decline in prices. 2014".

Manufacturers have implemented major cuts since the beginning of 2017, and in October a barrel of less than $ 30 a barrel of oil is worth $ 85. a pulled out and greatly increased revenues.

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