Tuesday , May 24 2022

Oil producers need a "new strategy" for more production – International


On Sunday, key oil producers called for a "new strategy" on production regulation to address the disparities between supply and demand in the market.

At the end of the meeting between members of the Abu Dhabi and OPEC members, producers expect that in 2019 the growth of production will be high due to world demand, and therefore they "demand the production of a new market equilibrium strategy".

Decision "It is possible to consider new ways of production correction in 2019, which may require new market balancing strategies," a statement reads.

Saudi Arabian Energy Minister Khalid al-Falah, the world's largest producer, said: "The Kingdom will produce 500,000 barrels per day.

The world's No. 2 producer has announced that it will reach any new agreement on the reduction of production volumes of Russian producers.

Saudi Arabian Energy Minister Saihil al-Mazroui said the volume of production should be reduced.

"It is necessary to create a new strategy … it is not a new problem of production or something other than production," he said.

The next meeting of the OPEC and other ministers in Vienna on December 5 is expected.

Fahih said that they would make a decision on this issue if they had settled the production and how much.

The oil has fallen sharply – the fifth loss of its value – only month in October, after reaching its peak of four years.

In the region, there were energy ministers from Russia, Oman, Kuwait and Arlia.

Saudi Arabia is 10.7 million barrels per day since October, Falih said.

Prior to the meeting, he signed a contract to reduce production volumes among members of the group at the end of 2016, which helped reduce the crisis to 1.8 million barrels per day. over delivery.

"There is still no consensus among the manufacturers," he said, "we have to study all the factors."

– Price drops & # 39; surprised & # 39; –

The brand Brent has the lowest price since Friday for the first time since April, at $ 70. The West Texas Interval (WTI) was below $ 60 – the lowest in nine months.

In his opening remarks, Fahih said that the fall in prices "surprised us" and that the market was shocked by this dissatisfaction.

The recent decline in prices comes after the United States has increased its saliva production, while Saudi Arabia, Russia and other countries have increased shipping supplies when there is a slowdown in demand.

New US sanctions against Iran's oil exports may even weaken.

Ford Razakzada, AFP expert Fawad Razakzada, said: "Prices are rising due to the steady growth in oil supplies from major oil producers such as Saudi Arabia, Russia and the United States.

"With the sanctions imposed by Iran, OPEC producers and OPEC representatives may discuss the need to reduce conformity or risk of further downturn in the weekend. 2014 ".

Manufacturers have made substantial cuts from the beginning of 2017 and have significantly improved their revenue by boosting oil prices in October from $ 30 barrels per barrel.

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