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Compared to April, Saudi Arabia’s production decline will be 4.8 million bpd
Saudi Arabia’s objective is to provide further reductions to stabilize the world oil market.
Saudi Arabia’s energy ministry has ordered Saudi Aramco, a state-owned company, to cut oil production in June by another million barrels per day, in addition to the country’s obligations under the OPEC + agreement. This was reported by SPA on Monday, May 11.
It should be noted that, compared to April, the decrease in production in Saudi Arabia will amount to 4.8 million b / s. In absolute terms, the country will produce 7,492 million b / s in June.
In addition, Saudi Aramco was instructed to find opportunities to reduce oil production in May to below the 8.492 million b / s level through an agreement with clients.
A Department of Energy spokesperson stressed that the kingdom’s goal is to encourage other producing countries to honor commitments through additional cuts and to provide additional cuts to stabilize the world oil market.
It was also learned that the United Arab Emirates and Kuwait in June will reduce oil production by 100,000 and 80,000 barrels per day, respectively, in addition to their obligations under the OPEC + agreement. This was announced by the oil ministers of both countries, Suheil al-Mazrui and Khaled al-Fadyl.
Therefore, the United Arab Emirates and Kuwait supported Saudi Arabia’s efforts to balance the market.
Recall that Saudi Arabia did not wait on May 1 and began to reduce the level of oil production before the entry into force of the OPEC + agreement.
In general, OPEC + countries should reduce production by 9.7 million barrels per day. Saudi Arabia’s quota was 2.5 million barrels.
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