Left Menu
Development News Edition

Saudi Arabia plans to keep Aug-Sept oil exports below 7 mln bpd - official

Reuters | Riyadh | Updated: 08-08-2019 18:01 IST | Created: 08-08-2019 17:26 IST
Saudi Arabia plans to keep Aug-Sept oil exports below 7 mln bpd - official
Image Credit: Wikipedia

Saudi Arabia plans to keep its crude oil exports below 7 million barrels per day in August and September despite strong demand from customers, to help drain global oil inventories and bring the market back to balance, a Saudi oil official said. State-owned Aramco's oil nominations - the requests made by refiners and customers for Saudi crude - were high in September, a sign of healthy oil demand globally, the Saudi official, who asked not to be named, said on Thursday.

Despite that, the kingdom is maintaining its oil production below 10 million bpd and keeping its exports below 7 million bpd in both August and September, he said. "Demand was universally stronger, in all regions. But we kept exports below 7 million bpd," the official said.

"If we satisfy September demand we will produce about 10.3 million bpd because demand is much higher, but we decided to keep production and exports flat and cut customer requests by 700,000 bpd." Saudi Arabia's production target under an output-cutting deal among the Organization of the Petroleum Exporting Countries and allies - a grouping known as OPEC+ - is 10.3 million bpd.

In July, OPEC and allies led by Russia agreed to extend oil output cuts until March 2020 to prop up the price of crude as the global economy weakens and U.S. production soars. "Saudi Arabia is committed to doing whatever it takes to keep the market balanced next year," the official said. "We believe, based on close communication with key OPEC+ countries, that they will do the same."

"The (oil market) fundamentals are good, especially on the supply side, due to a combination of strong OPEC+ over-compliance, and a lower than previously expected U.S. outlook," the official said. Brent crude was trading at $56.91, up 68 cents or 1.2%, at 1141 GMT on Thursday.

The EIA on Tuesday lowered its domestic oil growth forecasts for the year after Hurricane Barry disrupted Gulf of Mexico output in July. Production is set to rise by 1.28 million bpd to 12.27 million bpd this year, slightly lower than the previous growth forecast of 1.40 million bpd.

Also Read: SKY customers able to access Spark Sport Rugby World Cup channel



Post-COVID-19 Nigeria needs a robust Health Management Information System to handle high disease burden

Nigeria is among a few countries that conceptualised a health management information system HMIS in the early 90s but implementation has been a challenge till date. Besides COVID-19, the country has a huge burden of communicable and non-com...

Morocco COVID-19 response: A fragile health system and the deteriorating situation

Learning from its European neighbors, Morocco imposed drastic measures from the initial stages of the COVID-19 outbreak to try to contain its spread. The strategy worked for a few months but the cases have surged after mid-June. In this sit...

COVID-19: Argentina’s health system inefficiencies exaggerate flaws of health information system

You can recover from a drop in the GDP, but you cant recover from death, was the straightforward mindset of Argentinas President Alberto Fernndez and defined the countrys response to COVID-19. The South American nation imposed a strict...


Latest News

Congress MP asks West Bengal CM to compile database of migrant labourers & send it to Centre

Congress MP Pradip Bhattacharya in a letter to West Bengal Chief Minister Mamata Banerjee claimed that a large number of migrant workers have not been registered in their native districts and hence deprived of the Prime Ministers benefit sc...

Farooq Abdullah calls up Sukhbir, hails his stand against farm bills

National Conference chief Farooq Abdullah on Sunday called up SAD chief Sukhbir Singh Badal and praised him for taking a stand against the farm bills. The NC chief also backed the Shiromani Akali Dals demand for inclusion of Punjabi in the ...

Mumbai: Film stuntman arrested for killing wife

A 52-year-old film stuntman was arrested for allegedly beating his wife to death as he suspected her character, Pydhonie police in Mumbai said on Sunday.Masood Alam Khan was pinned down by neighbors on Saturday evening as he tried to escape...

Motor racing-Triumphant Bottas tells his critics to get lost

Valtteri Bottas addressed his critics with another of his to whom it may concern messages after winning Sundays Russian Grand Prix. It was no more fit to print than the one the Finn made after winning in Australia last year, but the gist of...

Give Feedback