Tuesday , July 27 2021

Saudi Arabia cuts oil exports

Saudi energy minister Haled Al-Faleh said his country would reduce oil production, while falling prices would cause fear of a market collapse in 2014.

In a meeting of the oil producer organization (OPEC) and other countries, Faleh said, "Oil exports from the Kingdom of Saudi Arabia in December will be 500,000 barrels compared to November."

On the other hand, the largest producer countries are still not "reconciled" over the total decline in production.

Some ministers say that a joint decision should not be made in Abu Dhabi, but OPEK should consider Vienna in December.

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

"It is necessary to analyze the situation in the market in detail, to analyze the implementation of the agreements (in effect)," he warned, and "before deciding what to do next", Russian counterpart Alexander Novak said. continued to cooperate for market stability ".

In some major countries, oil prices fell by about 20 percent in one month, due to the increase in production and fear of falling demand, initially reaching the highest level – the highest in four years.

The price of Brenta crude oil fell below $ 70 for the first time since April, and the US barrel price is $ 60. It fell below the ninth month of falling prices.

Saudi Arabia, Russia, Kuwait and Iraq have recently increased crude oil production and have oil shale oil in the US, pointing to a slowdown in demand.

Analysts of the Economist Intelligence Unit, Kailin Birch, the latest decline in oil prices, especially the slowdown in economic growth is the result of the decline in demand from China, the largest importer, he said.

On the other hand, the US sanctions against Iran, which face the threat of reducing global supply and raising prices, have received less than expected results.

In terms of sanctions, two of the three largest manufacturers in the US, Moscow and Riyadh, revised their production restriction agreements in June to extract more oil and compensate for the decline in Iranian exports.

The Saudi energy minister said Riyadh had raised 9.9 million barrels of production in May to 10.7 million in October.

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