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Saudi to slash oil exports after price slide: Minister

AFP  |  Riyadh 

kingpin will slash its in January by 10 percent compared to November, its minister said Wednesday as producers move to shore up tumbling prices.

said the kingdom, the world's top crude supplier, would cut its exports to 7.2 million barrels per day in January, down from 8.0 million bpd in November.

He also announced a further 100,000 bpd cut in February.

and its allies decided last month to cut their overall output by 1.2 million bpd starting in January, to boost prices hit by a supply glut and fears demand could plummet.

Falih said Saudi production had fallen to 10.2 million bpd, down from the roughly 11 million bpd it was pumping when decided to end a production cut deal in May.

"We are serious about restoring balance to the market," Falih told a press conference in held to announce that the kingdom's vast are even bigger than previously thought.

"We are concerned about volatility in the oil market," he said. "We have seen peaks and drops in prices (that are) completely unjustified by the fundamentals."

After Brent crude hit USD 85 a barrel in early October, prices dived more than 40 per cent over the following two months due to oversupply and fears of a trade war between the and that could slash demand.

But prices have partially rebounded in the past few days after a new deal, in which and non-OPEC agreed to trim output by 1.2 million bpd, came into effect in January.

That figure is "more than sufficient to bring balance to the market," said Falih, adding that the production cut would trim excess supply from the market.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 10 2019. 00:35 IST