Saudi Arabia may reduce the decrease in oil production from 1 million to 0.8-0.9 million barrels per day in October. Such an estimate RIA Novosti given Sergei Kolobanov, Deputy Director of the Center for Industrial Economics in the Fuel and Energy Complex of TsSR.
The expert admitted that Riyadh will continue to voluntarily reduce oil production. Kolobanov does not expect a sharp increase in fuel prices in the coming months. At the same time, the news that such cuts will be reversed will lead to a significant drop in oil prices rather than an increase in production. The energy expert explained that this would only be seen as a resentment of the Saudis against other market participants who occupied their niche at the time.
“It seems possible to slightly reduce this voluntary restriction, for example, to 0.8-0.9 million bpd, to show the market that the Saudis have ‘confidential knowledge’ about future demand growth,” Kolobanov said.
In the auctions held on the London ICE stock exchange on Friday evening, the price of North Sea reference brand Brent oil rose 2.14% on the day to $88.38 a barrel. Leading analyst of the National Energy Security Fund, Igor Yushkov, admitted in an interview with socialbites.ca that Saudi Arabia will begin to bring additional volumes of fuel to the market if prices begin to stabilize at $ 90 per barrel. He acknowledges that Riyadh will likely extend the voluntary cut in oil production until October.
It was learned on 3 August that Saudi Arabia will voluntarily reduce oil production by 1 million barrels per day for September. The SPA news agency said Saudi Arabia’s output in September would be around 9 million barrels per day, citing a source from the Kingdom’s Ministry of Energy.
As a rule, Moscow and Riyadh announce their decisions on voluntary cuts on the same day. The previous day, Russian Deputy Prime Minister Alexander Novak said that the Russian Federation has reached an agreement with the partners of the OPEC+ alliance to reduce oil exports and will announce the new parameters next week.
Formerly socialbites.ca saidWhat will happen to oil prices in September?