Saudi Arabia has denied reports of an increase in oil production
2022.11.21 13:14
Saudi Arabia has denied reports of an increase in oil production
Budrigannews.com – Saudi Arabia said it is prepared to make additional cuts if necessary, and it denied a report that it is discussing an increase in oil production for the OPEC+ meeting next month. As of 5:18 p.m. in London, crude futures had recovered earlier losses and were trading 1.8% lower at $86.04 a barrel.
In a statement released by the Saudi Press Agency, Saudi Energy Minister Prince Abdulaziz bin Salman stated, “The current cut of 2 million barrels per day by OPEC+ continues until the end of 2023.”We are always prepared to intervene if further action is required to balance supply and demand by reducing production.
After the Wall Street Journal reported that the kingdom and other members of the group were considering raising output by as much as 500,000 barrels a day, oil futures dropped as much as 6.1% earlier, dipping below $85 a barrel for the first time since September. After the Organization of Petroleum Exporting Countries and its allies decided in October to cut production by 2 million barrels per day, that would have been a significant turnback.
The move has been slammed by US President Joe Biden, who claims that it harms the global economy and helps Russia, an OPEC+ member, in its war in Ukraine.
Crude prices have fallen as the economic outlook has deteriorated and China continues to struggle with Covid-19 outbreaks, despite an initial rally following the cuts agreement. Due to “uncertainties” regarding the state of the global economy, Prince Abdulaziz has stated that OPEC’s forecasts for global oil demand have been reduced twice.
According to information provided by the energy analytics company Kpler Ltd., Saudi Arabia has already drastically reduced its oil exports this month in accordance with the OPEC+ agreement. The cartel’s next meeting is scheduled for Dec. 4.
