Published: Чт, Июля 05, 2018
Business | By Kate Woods

Oil Prices Decline as Supplies Increase From Saudi Arabia and Russian Federation

Oil Prices Decline as Supplies Increase From Saudi Arabia and Russian Federation

The leader of Saudi Arabia promised U.S. President Donald Trump that he can raise oil production if needed and the country has 2 million barrels per day of spare capacity, the White House said on Saturday.

U.S. production has soared 30 per cent in the past two years, to 10.9 million bpd, meaning the world's three biggest oil producers now churn out nearly 11 million bpd each, meeting a third of global oil demand.

Two posts on Twitter in June criticised Opec prices for being too high. Trump's administration in early May said that it would renew US sanctions on Iran and has sought to reduce other foreign buyers' purchases of Iranian oil. "You are actually discrediting them and undermining their sovereignty, we expect you to be more polite".

"Asking the cartel to increase output is like trying to put a Band-Aid on a broken system that shouldn't even exist in the first place."

He said, "The US [officials'] statement in this regard is unilateralism...and a breach of all worldwide rules and regulations in energy and trade sectors".

Over the weekend, the oil market received another jolt on news that force majeure will likely be declared at two additional Libyan export terminals, which has translated into the disruption of more than 850,000 bpd and has pushed the country's output down to a paltry 300,000 bpd. Venezuela's oil industry is in shambles and conflict in Libya has caused large swings in supplies. Republican presidents, especially George H.W. Bush and his son, used diplomatic channels with Saudi Arabia, the world's biggest exporter which pumps nearly one-third of OPEC's output.

Trump announced earlier this year that he would pull the USA out of the pact, which offered Tehran sanctions relief in exchange for curbing its nuclear program.

Читайте также: Antifa, Supporters of Right-wing Candidate Clash In Portland

Increasing supply by 2 mb/d is a very different thing than "prudently" using spare capacity to "ensure market stability".

Trump appears to be trying to "talk the market down", said Lawrence Goldstein, who directs the Energy Policy Research Foundation.

Referring to reports that Saudi Arabia may increase its oil exports to replace Iranian oil in world markets, Jahangiri said: "Anyone trying to take away Iran's oil market (share) would be committing great treachery against Iran and will one day pay for it".

In late 2016, OPEC members and 11 non-OPEC countries struck a deal to reduce oil output by 1.8 million barrels per day compared to October 2016. With this in mind, it's unclear if the Kingdom can effectively offset all shortfalls.

Saudi Arabia now produces some 10 million barrels of crude oil a day.

Oil prices had risen on Friday on worries that United States sanctions against Iran would take away significant volumes of crude oil from world markets while oil demand worldwide increases.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2018 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Like this: