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Saudi Energy Minister: Saudi Arabia does not need to apply for US approval to cut oil production
Source: Observer Network
Keywords: OPEC oil production reduced Saudi Arabia
[Text / Observer Network Wang Yuwen]
"We don't need any foreign government approval for energy production."
Although US President Trump screamed that the OPEC members did not cut production, they were quickly taken back by Saudi Arabia.
According to the Arab news website “alaraby”, OPEC members and their allies held a meeting in Vienna on December 6 to discuss the possibility of drastically reducing oil production.
Although the final agreement has not yet been reached, Saudi Energy Minister Khalid al-Falih said that Trump’s previous remarks said that “there is no way for the United States to tell us what to do”.
Report screenshot
"Russia Today" (RT) reported that in the past two months, global oil prices have plummeted by more than 30%, which has caused oil exporters to feel considerable pressure. OPEC and its allies hope to raise oil prices. Saudi Arabia has previously urged OPEC and its allies to cut oil production by at least 1.3 million barrels per day, which is equivalent to 1.3% of global production.
But this is what Trump did not want to see. Just one day before the Vienna meeting, Trump said on Twitter that he hopes OPEC will continue to maintain the current supply of crude oil, and the world does not want to see higher oil prices.
“alaraby” pointed out that all signals indicate that although Trump exerted pressure, cutting production will continue.
“The reduction of 1 million barrels is ideal,” said Falih. “In theory, every member should participate equally. I think this is a fair and just solution.”
However, according to the Consumer News and Business Channel (CNBC) reported on the 6th, after the meeting on Thursday, OPEC reached a preliminary production reduction agreement, but did not determine the amount of production, but wait until the local time Friday and Russia The OPEC allies will make a decision when they meet.
Affected by this, the price of light crude oil for delivery on January 6th of the New York Mercantile Exchange in January 2019 fell by 1.40 US dollars to close at 51.49 US dollars per barrel, a decrease of 2.65%. London Brent crude oil futures for February 2019 fell $1.50 to close at $60.06 a barrel, a decrease of 2.44%.
CNBC pointed out that despite being the de facto "leader" of OPEC, Saudi Arabia is under pressure to take the lead in stabilizing the oil market.
OPEC's third largest oil producer, Iran does not want to be affected by the reduction in production. The country’s oil minister, Bijan Namdar Zanganeh, said that since the United States is imposing sanctions on Iran, “we are not prepared to cut our production during the sanctions period.” But he also stressed that “Iran supports any of the OPEC members’ The decision to manage the market."
Another important factor is Russia, which Reuters quoted five unnamed representatives as saying that OPEC's tendency to cut production plans actually depends on Moscow's decision.
Although Oman Minister of Oil and Gas Muhammad said: "All of us, including Russia, believe that it is necessary to cut production," Russian Energy Minister Novak also said on the 6th that due to cold weather, the country will cut oil production in the winter. It is much more difficult."
This article is an exclusive manuscript of the Observer Network and may not be reproduced without authorization.
Source: Observer Network
Keywords: OPEC oil production reduced Saudi Arabia
[Text / Observer Network Wang Yuwen]
"We don't need any foreign government approval for energy production."
Although US President Trump screamed that the OPEC members did not cut production, they were quickly taken back by Saudi Arabia.
According to the Arab news website “alaraby”, OPEC members and their allies held a meeting in Vienna on December 6 to discuss the possibility of drastically reducing oil production.
Although the final agreement has not yet been reached, Saudi Energy Minister Khalid al-Falih said that Trump’s previous remarks said that “there is no way for the United States to tell us what to do”.
Report screenshot
"Russia Today" (RT) reported that in the past two months, global oil prices have plummeted by more than 30%, which has caused oil exporters to feel considerable pressure. OPEC and its allies hope to raise oil prices. Saudi Arabia has previously urged OPEC and its allies to cut oil production by at least 1.3 million barrels per day, which is equivalent to 1.3% of global production.
But this is what Trump did not want to see. Just one day before the Vienna meeting, Trump said on Twitter that he hopes OPEC will continue to maintain the current supply of crude oil, and the world does not want to see higher oil prices.
“alaraby” pointed out that all signals indicate that although Trump exerted pressure, cutting production will continue.
“The reduction of 1 million barrels is ideal,” said Falih. “In theory, every member should participate equally. I think this is a fair and just solution.”
However, according to the Consumer News and Business Channel (CNBC) reported on the 6th, after the meeting on Thursday, OPEC reached a preliminary production reduction agreement, but did not determine the amount of production, but wait until the local time Friday and Russia The OPEC allies will make a decision when they meet.
Affected by this, the price of light crude oil for delivery on January 6th of the New York Mercantile Exchange in January 2019 fell by 1.40 US dollars to close at 51.49 US dollars per barrel, a decrease of 2.65%. London Brent crude oil futures for February 2019 fell $1.50 to close at $60.06 a barrel, a decrease of 2.44%.
CNBC pointed out that despite being the de facto "leader" of OPEC, Saudi Arabia is under pressure to take the lead in stabilizing the oil market.
OPEC's third largest oil producer, Iran does not want to be affected by the reduction in production. The country’s oil minister, Bijan Namdar Zanganeh, said that since the United States is imposing sanctions on Iran, “we are not prepared to cut our production during the sanctions period.” But he also stressed that “Iran supports any of the OPEC members’ The decision to manage the market."
Another important factor is Russia, which Reuters quoted five unnamed representatives as saying that OPEC's tendency to cut production plans actually depends on Moscow's decision.
Although Oman Minister of Oil and Gas Muhammad said: "All of us, including Russia, believe that it is necessary to cut production," Russian Energy Minister Novak also said on the 6th that due to cold weather, the country will cut oil production in the winter. It is much more difficult."
This article is an exclusive manuscript of the Observer Network and may not be reproduced without authorization.
