Daily Management Review

Saudi Arabia Sets a New Record for Oil Production


04/08/2015


10.3 million barrels per day: Saudi Arabia reached this level of oil production in March. This is a record figure since 2002. Minister of Petroleum and Mineral Resources could not explain the reason for such a record increase in production, but experts see this as a continuation of the market leader’s struggle with US shale miners.



According to TASS referring to agency Bloomberg, last month, Saudi Arabia increased its oil production to record levels in 2002, reaching a level of 10.3 million barrels per day. According to the agency, reported in Riyadh on Tuesday, Minister of Petroleum and Mineral Resources of Saudi Arabia Ali bin Ibrahim Al-Nuaimi. The Minister could not identify the reason for the Saudi oil industry went to the next record. Previous was recorded in August of 2013 - an average of 10.2 million barrels per day. Saudi Oil Minister said that the country is ready to take actions that will lead to an increase in oil prices, but only if it is supported by countries outside OPEC.

Market experts believe that the country has reached the record for oil production due to unexpected high demand of foreign refiners and enhance the capacity of production in Saudi Arabia itself. It is obvious that the country is trying to maintain its leadership in the global oil market by increasing the volume of its production. Competition with American miners shale oil and non-members of the cartel, including Russia, is continuing. Saudi Arabia now controls about 10% of the world market.

Many analysts believe that there is a surplus of oil on the market right now. And, to compensate for such a proposal, you need a large increase in demand. Therefore, after voiced by Minister of Petroleum and Mineral Resources of Saudi Arabia data, oil prices on world markets began to decline.

It was also reported that Saudi Arabia had agreed to increase the price of oil, if it is supported by countries outside OPEC.

Saudi Arabia is ready to influence the rise in oil prices, but only if it is supported by the states not included in the Organization of Petroleum Exporting Countries, said Saudi Oil Minister Ali bin Ibrahim Al-Nuaimi to Interfax.
 
 - The kingdom remains ready to contribute to return stability to the market and reasonable and practicable improvement in prices, but only with the participation of major producers and exporters, and based on clear principles and high transparency, so that the burden is not laid down solely on the shoulders of the kingdom or OPEC countries, - said Al-Nuaimi.
 
In the coming months, he expects growth in oil prices, which were recently held at their lowest levels in six years.
 
- As for oil, I expect an increase in prices in the near future, as well as save the kingdom production at about 10 million barrels per day, - he said.
 






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