The Kingdom of Saudi Arabia, the largest state of the Arabian Peninsula, has announced its intention to reduce oil supplies absolutely in all directions.
Thus, starting from December this year, exports will decrease by about 120 thousand barrels per day compared to the current month.
Ministry of Energy of Saudi Arabia announced the intention of official Riyadh. The authoritative agency Bloomberg was the first to publish the information about the major changes in the energy market.
The Kingdom is a very significant exporter of oil. Its decisions have a great impact on the world energy markets. For example, over the last week, oil shipment was measured by an indicator of 816,000 barrels per day. The average figure for October amounted to 506 thousand barrels per day.
The decision of Saudi Arabia is not caused by political reasons, but explained by the same arrangements regarding the limitations of the production. These arrangements are the same for all the countries belonging to OPEC +.
It should be noted that the policy of the artificial way of the production reducing works and has already led to the fact that the surplus of the world oil reserves has significantly decreased, and the prices for energy resources have stabilized, i.е. they have grown.
The agreement on the reduction of oil production by OPEC + countries ends next spring. Experts expect that it can be extended during the negotiations, which will be held in the framework of the Vienna meeting of the oil-producing countries. We recall that they will take place on November 30. Well, we look forward to it, but until then we are preparing for the next increase in prices for energy resources.
The material was prepared with the participation of Andrey Majorov,
a leading analyst of the brokerage company CT Trade