Saudi Arabia cut July production

Saudi OPEC julyThe Vienna conference on 23 June 2018 decided the oil-producing would endorse a normal output rise of one million barrels crude oil each day. (Image source: Nestor Galina/Flickr)Saudi Arabia’s oil production amounted to 10.290 mmbbl per day in July 2018, down about 200,000 bpd from June 2018, despite the pledge of the top OPEC producer to ramp up output during the 174th meeting of the OPEC Conference in Vienna on 23 June

As reported by Bloomberg, Saudi Energy Minister Khalid al-Falih promised to add, in cooperation with other OPEC allies, about one mmbbl of oil. Saudi Arabia was thought to pump about 10.8 mmbbl or 11 mmbbl per day, said the source.

According to the industry experts, Saudi production cut signals the kingdom’s ineptness to find international buyers to advocate a record level of production, as agreed during Vienna conference.

Besides this, last week, the US energy companies cut oil rigs as the rate of growth has declined over the past few months.

The Vienna conference analysed oil market developments since it met in Vienna at the end of November and reviewed the oil market outlook for the remainder of 2018.

The conference noted that the oil market situation has further improved over the past six months, with the global economy remaining strong, oil demand relatively robust, albeit with some uncertainties, and with the market rebalancing evidently continuing. Moreover, the return of more stability and more optimism to the industry has been welcomed by all stakeholders.

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