Saudi Arabia reduces oil exports

Saudi energy minister Haled Al-Faleh said today that his country will cut oil production, while declining prices will cause the fear of a collapse in the market in 2014.

"Crude oil exports 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 producers' organization (OPEC) and other countries.

On the other hand, he said that there is still no "consensus" among the main producer countries about the overall decline in production.

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

"It's too early to talk about a specific action," Haled al-Faleh said, questioning a possible cut in production to halt the fall in prices.

His Russian counterpart, Alexander Novak, said it was necessary to "analyze in detail the market situation, analyze the implementation of the agreements (which are in force)" and warned that before "deciding what to do next, the market stabilization co-operation continued."

Among the surge in production in some of the major producer countries and fears of falling demand, oil prices have fallen by nearly 20 percent a month after they peaked at the top of four years in four years.

The price of Brenta oil fell for the first time in price below $ 70 from April and the US oil barrel price is less than $ 60, the ninth month of declining prices.

Despite signs of slowing demand, Saudi Arabia, Russia, Kuwait and Iraq have recently increased oil production and the Sinai oil shale market.

The recent fall in oil prices is mainly due to a decline in demand from China, the largest importer whose economic growth is slowing down, said Kailin Birch, analysts at the Economist Intelligence Unit.

On the other hand, the US sanctions against Iran, which have been threatened by a reduction in world supply and an increase in prices, have undergone fewer consequences than expected.

In terms of US, Moscow and Riyadh sanctions, two of the three largest manufacturers in June changed the agreement to cut production to get 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, Saudi Energy Minister said.

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