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Saudis will not reduce oil production themselves



Saudi Arabia will do all that is necessary to stabilize the oil market, but it can not and will not do it alone without a collective decision from OPEC and participants in the no agreement -OPEP, said Saudi Minister of Energy, Khalid al-Falih on: Wednesday.

"We will … do all that is necessary, but only if we act together, as a group of 25," al-Falih, quoted by Reuters, told reporters in Abuja, capital of Nigeria, referring to 25 OPEC countries led by Saudi Arabia and Russia. independent producers from OPEC countries who have tweaked their oil production in order to stabilize the market for almost two years.

In June, Saudi Arabia and Russia urged the group to start pumping more oil to compensate for what was to be a sharp drop in Iran's oil supply with US sanctions. But after the US granted exemptions to eight of Iran's major oil buyers, oil prices began to fall, fueled by fears of oversupply and slower growth in oil prices. global economy and oil demand.

Now, the Saudis need higher oil prices than Brent crude by $ 60, but Riyadh's earlier suggestion of a major decisive cut announced at the OPEC + meeting next week could be postponed. in question by the recent decision of President Trump. comments on the price of oil – "Thanks to Saudi Arabia, but let's go lower!" – and his support for the kingdom and his crown prince, Mohammed bin Salman, as more and more calls are pushing the Americans to punish the Saudis for the murder of Jamal Khashoggi.

"As Saudi Arabia, we can not do it alone, we will not do it alone," al-Falih said Wednesday, citing a reduction in production, adding that "I think people know that leave the market alone, without clarity nor any collective decision to balance the market helps. "

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While Saudi Arabia launches the idea of ​​a further reduction in production, its main non-OPEC ally in the agreement, Russia, is less convinced that it could participate in a new reduction, or at least let it believe the market.

Russian Minister of Energy discusses with local producers the possibility of a reduction in his oil production and will continue discussions with a view to reaching a position at the OPEC / non-OPEC meeting scheduled for early December Energy Minister Alexander Novak said last week. Another meeting with Russian oil companies took place on Tuesday, Reuters reported on Wednesday, citing two sources who knew that such a meeting was taking place.

By Tsvetana Paraskova for Oilprice.com

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