Riyadh and Moscow expand agreement on stability of oil market

Saudi Arabia and Russia have agreed to extend the previous agreement aimed at maintaining the stability of the oil market, at a time when increased global stocks could change the course of the Organization's operations. oil exporting countries (OPEC) and external producers.

Saudi Arabia and Saudi Arabia have agreed to extend their agreement to maintain the stability of the oil market, said Saudi Minister of Energy, Industry and Mineral Resources , Khaled al-Faleh, in a speech broadcast by Al-Akhbar.

"The Kingdom and Russia can jointly intervene and get the other producing countries to prevent the markets from falling into disequilibrium," he said.

He added that "the intervention might be necessary to restore the stability achieved after fatigue and trouble over the past 18 months," he added, "it is necessary to intervene to reduce inventory of oil after rising in recent months.

Russian Energy Minister Alexander Novak said Russia was ready to continue its cooperation with OPEC and the oil producers outside the organization, adding that the oil market was currently balanced despite the volatility of the stock.

OPEC Governor Adeeb al-Aamy said the oil market could become surplus in the fourth quarter of the year due to the increase in crude stocks and the slowdown in oil prices. request. The largest oil exporter in the world would "adjust" such production changes.

"We see that the market could turn in the fourth quarter towards an outbreak of inflation, as indicated by the rise in stocks in recent weeks," he told Reuters. "So we want to be careful not to exaggerate the correction and cause a significant increase in stocks," he said.

Asked about concerns about the slowdown in economic growth in countries such as China, a major consumer of crude oil, the blind said: "Growth risks are a source of concern, especially in emerging countries … We are aware that the demand for oil is responding to global macroeconomic factors, we will respond positively to our partners. "

"Saudi Arabia is not pushing oil into the market, but meeting the needs of consumers," he said. "The increase in Saudi Arabia's crude output in recent months has been a response to growing demand."

"At a time when we and the rest of the producers are increasing our production, the excess production capacity will be reduced by the same amount," he said, noting that, in the case of Saudi Arabia, unused would continue to decline in November, there is a demand in the market for them.

"The demand for oil is expected to decrease by the end of the year due to seasonal factors," he said, adding that "we have the opportunity to adjust our production to keep pace."

In a context, a ministerial committee pointed out that OPEC oil producers and overseas may have to change course because of the increase in crude stocks and economic uncertainties.

The ministerial and non-OPEC oversight committee reviewed a technical report concluding that states had committed 111 percent of approved supply reductions in September, up from 129 percent in August.

The Committee was satisfied with the collective performance of Member States in September. But has expressed concern over the growth of stocks in recent weeks, citing uncertainties that could emerge in the macroeconomic horizon and that may require a change of course.

The International Energy Agency predicts that oil demand will increase by 10%, reaching more than 106 million barrels per day by 2040, while demand for natural gas will increase further 40%, to reach 5,400 billion cubic meters.

"Russia's largest oil producer is comfortable with the current price of crude and nobody in the world wants a price spike that could threaten global economic growth," said Igor Sechin, chairman of the Russian oil company.

BP chairman Robert Dudley told Reuters, on the sidelines of a conference, that the company expects to begin exploration in Libya with Italian oil giant Eni during the first quarter of the year. next year.

Oil prices have fallen due to the collapse of global stock markets. US stocks posted their largest daily losses since 2011 to offset gains this year.

Brent crude reached $ 75.76 per barrel, down 0.5% from the previous regulation. The US WTI crude futures prices were $ 66.45 per barrel, down 0.6% from the previous settlement.

Kuwait has signed a memorandum of understanding with Sinopec for the construction of a refinery in southern China, the Kuwaiti Ministry of Petroleum said.