Tuesday , June 22 2021

Saudi Arabia discussed a proposal to cut oil pumping



Saudi Arabia is discussing a proposal that could cause OPEC and other oil producers to reduce their supply to 1 million barrels per day, two sources told Reuters on Friday, when the world's biggest oil exporter Facing falling prices.

Sources said that any agreement would depend on factors such as the amount of Iranian exports, after the United States imposed sanctions on Tehran but was given Iran's main oil customer. exception to keep buying it.

(Also read: Oil Minister Manuel Quevedo meets Saudi minister Khalid Al Falih)

Riyadh was surprised by the exceptions given to clients such as China and India, a measure affecting oil prices, at least three OPEC sectors and sources told Reuters.

Now Saudi Arabia wants to prevent falling prices, which traded less than US $ 70 per barrel on Friday, and spearheaded the discussion for reduce oil production next year, according to the same source.

Under the agreement that expires at the end of the year, OPEC and non-OPEC producers agreed to reduce supply by around 1.8 million barrels per day (bpd).

However, producers ended up cutting more, partly because of unexpected losses in Venezuela, Libya and Angola, so in June they agreed to limit cuts to levels previously agreed to, which meant recovering about 1 million barrels. supply.

OPEC and its allies will meet Vienna from December 6 to 7 to decide production policy for 2019.

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