Friday , August 19 2022

Saudi Arabia cuts world oil production by 1 million barrels a day


Saudi Arabia announced on Monday that reducing global oil production by one million barrels per day (mbd) is essential to achieving market equilibrium. This announcement occurs in the context of a drop in commodity prices, creating a fear that prices will deteriorate in 2014.

Saudi Energy Secretary Khaled Al Faleh said the technical analysis that we conducted yesterday should reduce one million barrels a day in order to balance the day. Abu Dhabi Oil Exporter (OPEC).

Riyadh, the world's largest producer, announced it would reduce its own production and reduce its exports by 500,000 barrels a day from November to December.

Saudi Arabia has suffered a great deal of financial difficulties in recent years after receiving estimates for 2014 as a result of a series of projects to overcome oil dependence.

In response to the recent announcement of Riyadh, the US reference light oil (WTI) and the European standard, the Brent barrel of the North Sea, rose more than $ 1 on Monday.

Oil prices declined about 20% after a month in April, peaking at the four-year high in early October due to increased production in some major producing countries and concerns about falling demand.

Brent was scheduled to be under $ 70 on Friday for the first time since April. West Texas Intermediate (WTI) is below $ 60, the lowest in nine months.

Despite signs of slowing demand, Saudi Arabia, Russia, Kuwait and Iraq have recently increased production of commodities and increased US shale oil production.

Saudi ministers will hold an informal meeting on non-OPEC and 15 member nations in Vienna on Dec. 5 to decide on global production decline.

– & # 39; New Strategy & # 39; –

Before this deadline expires, producers pay attention to market signals. They may change, but Saudi Energy Secretary claimed, "If we had to reduce 1 million barrels a day, we would do that."

"I want to see how the market has evolved," Russian Prime Minister Alexander Novak said in an interview with Bloomberg News Agency. "Our ultimate goal is stability.

Suheil al Mazruei, energy minister of the United Arab Emirates (UAE), said he needed a new strategy and would not increase production.

A spokesman for the Iraqi oil ministry in the Petroleum Development Department agrees that the OPEC member state, Iraq, will support oil market stability and equilibrium return.

The recent price decline is mainly due to the unexpected impact of US sanctions on the energy sector, which is a major threat to the world's largest importer, China, to reduce demand and reduce global supply and raise prices.

The world's third largest producers, Moscow and Riyadh, are expected to be sanctioned in June, compensating for and compensating for Iran's reduced exports by changing production restrictions.

On Sunday, major oil producers demanded a "new strategy" based on production adjustments and said world oil supplies would surpass demand next year.

Source milhao-de-barris-dia /

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