Saudi Arabia has pledged more than $ 1 million a day to oil production in the world market on Monday. And noted the need to reduce it to barrels. This announcement takes place in the conditions of a decline in raw material prices, which is a risk of price hike as it happened in 2014.
"The technical analysis, which was examined on Sunday (Sunday), has shown that we need to reduce 1 million barrels per day to balance our market," said Saudi Arabian Energy Minister Khaled Al-Falek, oil exporters from Abu Dhabi and OPEC countries.
Previously, Falcon announced that Riyadh, the world's largest producer, would cut its production and reduce its exports to 500,000 barrels per day from November to December.
Saudi Arabia, which recently implemented a number of projects to eliminate oil dependence, has suffered financially in recent years following the acquisition of quotations in 2014.
In response to the latest Riyad Declaration, the US European gasoline price index and the WTI Brent Brent rose by more than $ 1 on Monday.
Due to the increase in production and the decline in demand in some of the major producer countries, oil prices dropped by about 20% during the month after rising to a four-year high in early October.
The brand Brent has the lowest price since Friday for the first time since April, at $ 70. West Texas Interval (WTI) was lower than $ 60 – less than nine months.
Despite a decline in commodity demand, Saudi Arabia, Russia, Kuwait and Iraq, and recently the United States saliva, have increased their production.
An official decree on the decline in global production will be made at a meeting on December 5 in Vienna between 15 members of non-OPEC member organizations and the organization.
– "New strategy"
Until now, manufacturers pay attention to market signals. Saudi Arabia's Energy Minister has demanded that they reduce daily to one million barrels a day.
His Russian colleague Alexander Novak, speaking to Bloomberg on Monday, sees "not only the decline in production but also how the market is developing." "Our main goal is stability," he said.
Energy Minister Suarez Al Mazroui from the United Arab Emirates said the new strategy would be needed and would not increase production.
OPEC member agrees with any decision regarding Iraq's oil market stability and recovery, "said Oil and Gas Ministry spokesman Ji Khajja in an interview with AFP.
The fall in prices is largely due to the fall in China's demand – the world's largest importer and the unexpected effect of global sanctions on Iran's energy sector.
According to the prospect of these sanctions, Moscow and Riyadh, which is one of the three largest producers in the world, have amended the agreement on restriction of production volumes in June due to Iran's export volumes.
On Sunday, major oil producers said global oil deliveries would exceed demand next year.