Tuesday , March 2 2021

Russia and Saudi Arabia face oil production

Saudi Arabia has opened a door to cut raw production, although Russia has said that the extra deliveries are short-lived, which puts two of the world's largest producers into joke for oil policy. State Energy Minister Khalid al-Falih said on Sunday that state energy giant Saudi Aramco would deliver less than 500,000 barrels a day in December compared to November due to lower demand.

"There are 500,000 barrels in December in November, so we see that it is closing down in the latter part of the year," Falih told reporters in Abu Dhabi before Opec's meeting and non-cartel countries controlling oil production.

Saudi Arabia has increased oil production by 1 million b / d after the pressure of US President Donald Trump, who asked Opecia to compensate for the loss of Iranian exports after US sanctions had been imposed on the oil industry.

But even though the United States asked for support and the Empire has pledged to increase its production, it granted derogations to large customers of Iranian oil, such as India and China, which caused concern over oversupply products. This led to Brent's oil prices falling to less than $ 70 a barrel on Friday above $ 85 a barrel in October.

Saudi Arabia is concerned about oversupply of the market, which means a slowdown in demand for the global economy and oil.

Oil analysts and Iranian oil authorities have said that at least 1 m barrel a day cut would be needed to balance the market.

The world's largest oil companies are struggling to lower the price of new crude oil, which could affect an ambitious social and economic reform program.

But Russia, the king's partner in balancing the market, has said on Sunday that it is not clear that the market will surpass next year, due solely to the imbalance caused by seasonal factors. Knowledge of Moscow's production policy tells FT last week about the country's oil producing countries with a view to increasing production by 300,000 b / d.

Saudi Arabia and Russia have cooperated in oil policy since 2016, when joint efforts to reduce production led to a multi-year oil spill and decided. In June this year, countries agreed to curb oil to ease the rise in oil prices.

Official press release from producers who met on Sunday to follow market basics said 2019 "[pointed] growing supply growth than global requirements ".

Representatives of the oil exporting states meeting in the official ministerial meeting in December stated that "the suppression of the global economic outlook" could weaken global demand for oil next year.

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