Sunday , September 25 2022

Saudi Arabia has announced a ban on oil exports


New YorkThe fall in prices and the global prices slowed down the oil market. Fears of uncertainty and further downturn. According to the media, since the beginning of October, the largest oil producers reduce subsidies to halt prices.

Saudi Arabian Energy Minister Halid al-Falih said on Sunday that the Saudi Arabian state energy company would cut oil exports to Saudi Arabia by 500,000 barrels per day. He delivered a speech at the weekend in Abu Dhabi, the Organization of Petroleum Products (OPEC) and a number of non-OPEC countries.

Saudi Arabia, the world's largest oil exporter, produces about 10.7 million barrels per day since October. Although Riyadh decided to cut export, other participants did not agree, according to al-Falih. However, according to the participants' opinion, the gap between supply and demand after the meeting may require a "new market equilibrium strategy", reminding that next year it may grow.

Russia sent mixed signals to potential production volumes. Russia's oil minister, Alexander Novak, has decided to cut off on Sunday with his country's group of producers, including Opek.

Nevertheless, it is difficult to predict that next year the oil market will overcome. "We have to wait some time to see how the market is developing," he said.

In addition, the Oman oil minister, Mohammed bin Hamad Al-Rumi, took part in Wall Street George's meeting: "There is a lot of unexpected consensus in 2019."

This opinion will be shared by market analysts and analysts. Jason Bordoff, professor of Columbia University, and Johnson Borddoff, Energy Representative of the former Obama Administration, said: "The meeting is a concern that the price hike in the producer countries will continue to decline. ,

Moreover, the Bordo oil states may not be ready to cut production due to uncertainty over the impact of new US sanctions on Iran's oil production.

Saudi Arabia, Russia and other oil producers gathered in the UAE capital this weekend to discuss a possible reduction in the next year by about one million barrels. The decision will be made at the Opec Conference in Vienna on December 6.

The oil cartel and Russia agreed to increase production in June, fearing that the United States could lead to sanctions against the OPEC member. Saudi Arabia, Russia and the United States have continued to increase emissions from Iran to compensate for possible losses. Now they do not need it. In the three countries, 33 million Barrel, one third of the global supply.

In addition, eight countries have been temporarily released from oil sanctions and can resume oil from Iran, China, Turkey, South Korea, Italy, Greece, Japan and Taiwan.

Three days after the US sanctions came into force on November 5, the US oil prices shifted to the bear market. Since the beginning of October, the US oil price has dropped by 21% to $ 60 per barrel – eight months below. The North Brent barrel has suffered a loss of $ 86 a couple of weeks ago and is now limited to a $ 70 psychological condition.

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