Gulf Oil and Gas accountACCOUNT

Saudi Arabia Says Oil Production Cut not to Boost Price

Source: Bloomberg 1/14/2013, Location: Middle East

Saudi Arabia denied what it said were suggestions that it cut oil production in December to push crude prices higher and accused unidentified media of misinterpreting the kingdom’s response to weaker demand.

The world’s biggest crude exporter is “strongly committed to a stable oil market” and is “optimistic that economic uncertainties will pass and growth will resume in 2013,” Ibrahim Al-Muhanna, an adviser to Oil Minister Ali al-Naimi, said in a statement e-mailed to energy journalists.

Saudi Arabia reduced output in December by 4.9 percent to 9.025 million barrels a day, the lowest level in 19 months, a Gulf official with knowledge of the country’s energy policy said last week. The kingdom is the largest member of the Organization of Petroleum Exporting Countries and the only one with significant unused capacity to produce more.

Some recent media reports were “categorically wrong” for interpreting the decrease in Saudi output last month as a “deliberate attempt” to push oil prices higher, Al-Muhanna said. “Production is primarily driven by customer requirements, not by price levels. It is the market which sets the price of oil.”

Crude Prices
February contracts of Brent crude, the benchmark for more than half of the world’s oil, were at $111.24 a barrel, up 60 cents, at 1:20 p.m. on the London-based ICE Futures Europe exchange. Brent gained 3.5 percent last year and has risen 0.1 percent this month.

Saudi production “fluctuates month to month and depends on a range of domestic, regional and international factors,” he said. Demand weakened in Saudi Arabia (SABIC) in the fourth quarter of last year after peaking in the summer, he said. International demand for Saudi oil also fell, because of slower growth in the euro-area and concerns about budgetary challenges in the U.S., he said.

OPEC forecasts published in a monthly report on Dec. 11 indicate the group will need to lower output this year to align supply and demand. OPEC’s 12 members estimated that demand for the group’s crude will average 29.5 million barrels a day in the first quarter, or about 1.2 million less than it pumped in November.

The statement from Al-Muhanna, an unusual communication by an adviser at the Ministry of Petroleum & Mineral Resources, didn’t say which media companies’ reports made an incorrect assertion.

Production News in Saudi Arabia >>

Iran >>  4/22/2019 - The Iranian Offshore Oil Company (IOOC) has increased oil production from Dorous offshore oilfield by launching Well D-6 in the field. ...
Iran >>  4/20/2019 - The CEO of Petroleum Engineering and Development Company (PEDEC),Touraj Dehghani,said that a number of wells had been closed in flood- hit in the West...

Azerbaijan >>  4/16/2019 - • SOCAR commissioned its highest-capacity well drilled at Umid field; it will produce 900 million cubic meters of natural gas annually ...
Nigeria >>  4/15/2019 - MX Oil plc, an oil and gas investing company quoted on AIM, announces the following corporate update: ...

Iraq >>  4/14/2019 - Dana Gas PJSC (the "Company"), the Middle East's largest regional private sector natural gas company, announces that during Q1 2019, Pearl Petroleum C...
Russia >>  4/9/2019 - Gazprom Neft Shelf has produced its 10-millionth tonne of oil at its Prirazlomnoye field — a fact confirmed by Andrey Patrushev, Deputy CEO for Offsho...

Related Categories: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  Food Supplies  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Unskilled Labors  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 

Related Articles: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Transportation, 4X4 Trucks  Utility Systems  Water Supply Services  Welding Products/Services 


Saudi Arabia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 |

More News

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.