Saudi energy minister calls for oil output cut by 1 million barrels

November 12, 2018 Off By Web Desk

Saudi Arabia’s energy minister said Monday there is a need to reduce oil supply by one million barrels per day to rebalance the market.

Demand by clients in December dropped by more than half a million barrels per day compared to November, said Khaled al-Falih, addressing an energy conference in Abu Dhabi, the capital of the United Arab Emirates.

He also said there is consensus on the need to achieve a balance in the market, according to Al-Arabiya.

His comments come one day after he announced that Saudi Arabia, the world’s top oil exporter, will cut its exports of crude oil in December by 500,000 barrels per day.

The announced Saudi output cut will reduce global oil supplies by nearly 0.5 percent, according to production data.

In October, Saudi Arabia increased its oil production to about 10.7 million barrels per day (bpd), compared to 9.9 million bpd in May.

The statements come amid a drop in oil prices, rekindling fears of a renewed dramatic fall in prices reminiscent of the 2014 plunge.

Source: International Islamic News Agency