"Saudi Arabia has something to do and will do," Saudi oil analyst Bjarne Schieldrop said in a statement on Thursday. Saudi Arabia has said it can do anything about the oil market, arguing that Saudi Arabia can benefit from the oil market. Write about the signal.
Crude oil prices fell below $ 70 on Friday, the lowest level since April, and dropped more than 20 percent since October. Following the weekend statement, oil prices rose 2.11 per cent on Monday to $ 71.07 a barrel.
Saudi oil minister Khalid al – Fali said he plans to supply 500,000 barrels of oil to the market every day.
At the same time, it was reported that Saudi Arabia and other oil exporters had long discussed reducing oil production to one million barrels over the weekend. This decision will be taken at the Opecs meeting on 6 December.
"Saudi Arabia now wants the price of crude oil they can afford, preferably $ 85, but certainly not $ 60.
Helge Andre Martinsen, analyst at DNB Markets, said the economy is warming ahead of the Opec meeting in early December.
– Saudi Arabia wants an agreement before the meeting. They said they would cut production by 500,000 barrels a day in December. "It is natural that DNB market analyst Helge Andre Martinsen thinks that when they go ahead and play their part, others agree to cuts.
High production record
He did not say whether Saudi Arabia would cut 500,000 barrels a day in November compared with November's high-yield output.
Historically, the period from November to December for Saudi Arabia was 150,000 barrels per day, so the plan was cut by 350,000 barrels a day from the seasonal pattern. Then they would cut the OECs by one million barrels, Martinson said.
The 1 million barrels per day reduction accounts for less than 2% of the daily output of more than 55 million barrels per day in OPEC + countries.
Both analysts believe that OEC countries will try not to overfill stocks.
"The background is that they do not really want to increase stocks next year because they have really spent a couple of years getting stocks at a high level, but it's uncertain what the market looks like," Martinsen says.
The uncertainties in 2019 include, among other things, that Iran's sanctions will make it less volatile for the production of countries like Venezuela and Libya, as well as less oil supply to the market.
"It is clearly impossible for OPEC to accurately predict the amount of oil that it has to produce in 2019. But we look forward to agreeing to trade when they are needed and willing to continue to emphasize trade when necessary, I write.