[인포스탁데일리=안호현 전문기자] Saudi Arabia is considering extending its production reduction policy until next year. Additional production cuts at the Organization of Petroleum Exporting Countries (OPEC) plus level are also being considered.
The Financial Times (FT) reported on the 17th (local time) that Saudi Arabia is likely to extend its production cut of 1 million barrels per day until next spring.
International oil prices plunged 5% on the 16th, falling to $77.42 per barrel. Saudi Arabia is in the process of voluntarily reducing production by 1 million barrels per day regardless of OPEC+ production cuts.
Citing an interview with an OPEC+ official, the FT reported, “We are considering additional production cuts until next spring.”
Saudi Arabia, which used to produce 12 million barrels of oil per day, is currently producing only about 9 million barrels per day. Along with Saudi Arabia’s voluntary extension of production cuts, additional production cuts by OPEC+ are also being discussed.
The issue of additional production cuts is expected to be discussed at a meeting of ministers of oil exporting countries to be held at the OPEC Secretariat in Vienna, Austria on the 26th.
One source said that a production cut of up to 1 million barrels per day has become a topic of discussion at the OPEC+ level.
OPEC+’s review of additional production cuts is mainly due to the decline in international oil prices, but the main reason is the heightened sense of crisis amid the war between Israel and Hamas.
Accordingly, Iran, Kuwait, Algeria, etc. are raising their voices in unison to reduce production in response to the Israel-Hamas war.
Some analysts say that if oil prices rise due to production cuts in the Arab world, U.S. President Joe Biden, who is up for re-election next year, could be put under significant pressure.
Due to the recent Israel-Hamas war, President Biden began to lose approval ratings to former President Donald Trump.
Hwang Seong-hyeon, a researcher at Eugene Investment & Securities, said, “While a decline in U.S. production capacity is inevitable in the future, Saudi Arabia has reaffirmed its will to extend production cuts through the JMMC and has even left open the possibility of additional production cuts.” He added, “In this situation, OSP continues to rise, and OPEC+’s “Our leadership in the oil market is gradually becoming stronger,” he said.
Reporter Ahn Ho-hyeon vicahh@infostock.co.kr
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2023-11-18 07:26:46
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