Wednesday , December 8 2021

Saudi Arabia reduces oil exports


Saudi energy minister Haled Al-Faleh said his country will cut oil production, while a fall in prices will lead to fears of a fall in the 2014 market.

"The export of oil from the (Saudi) Kingdom in December will be 500,000 barrels a day lower 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 major producer countries on the total decrease in production.

A joint decision should not be made in Abu Dhabi, several ministers said, but OPEC should consider December in Vienna.

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

His Russian counterpart, Alexander Novak, said that it is necessary "to analyze the situation on the market in detail, to analyze the implementation of the agreements (which are in force)" and warned that before deciding what to do next, this should be done in order to continue the cooperation for the stabilization of the market " .

Between the increase in production in some major countries and the fear of falling demand, oil prices fell by almost 20 percent in a month, as they initially reached the peak – the highest level in four years.

Brent crude oil prices fell below $ 70 on Friday for the first time since April, and the price of barrels of US oil is below $ 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 drop in oil prices is particularly the result of a decline in demand from China, the largest importer whose economic growth slows down, says Kailin Birch, analysts at the Economist Intelligence Unit.

On the other hand, US sanctions against Iran, which are endangered by a decline in global supply and price rises, have been with less consequence than expected.

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

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

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