Wednesday , March 3 2021

Saudi Arabia reduces oil exports

Saudi Energy Minister Haled Al-Faleh announced that his country will reduce oil production, while falling prices will cause fears of a market collapse in 2014.

"Oil exports from Saudi Arabia in December are 500,000 barrels a day less than in November," Faleh told reporters at Abu Dhabi's Oil Producer Organization (OPEC) and other countries.

On the other hand, he said that there is not yet "unanimity" with the major producer countries on the decline in total output.

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

"It's too early to talk about a particular activity," Haled al-Faleh told a possible cut in production to stop the fall in prices.

His Russian counterpart, Alexander Novak, said that "we need to analyze the situation in the market in detail, analyze the implementation of existing agreements" and warned that, before deciding what next, cooperation on market stabilization has continued.

Between the growth of production in some major countries and the fear of mere demand, the price of oil fell by almost 20 per cent on a monthly basis because they were at the beginning of the peak – at the highest level in four years.

Brentan crude oil prices fell below $ 70 on Friday for the first time since April, and US oil barrels cost less than $ 60, which is a ninth-month decline.

Despite the slowdown in demand, Saudi Arabia, Russia, Kuwait and Iraq have recently increased their crude oil production, and the United States has oil shale oil.

The recent drop in oil prices is due in particular to the decline in demand from China, which is the largest importer whose economic growth is slowing down, said Economist Intelligence Unit analyst Kailin Birch.

On the other hand, US sanctions against Iran, which have been threatened to reduce global supply and raise prices, have gone unnoticed.

From the point of view of sanctions, the United States, Moscow and Riyadh – the two of the three largest producers in June – revised their production restriction agreement to increase oil and compensate for the decline in Iranian exports.

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

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