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The oil markets want to develop 'new strategies' to address the surplus markets of DW News



At the end of the meeting in Abu Dhabi, which took place in OPEC member countries and others, producers said that by 2019, production growth will be greater than global demand, studying "production adjustment options may require new strategies for balancing the market".

Saudi Arabia announced on Sunday (November 11, 2018) that it will reduce the daily supply of oil by 500,000 barrels in December, when the oil company in Abu Dhabi will examine the possibility of returning to reduce oil production.

"The Kingdom will cut its exports in December by 500,000 barrels compared to November," Saudi Economy Minister Khalid Al-Falih said before the meeting in Abu Dhabi.

He pointed out that the Kingdom has been producing 10.7 million barrels of oil a day since October, of which around three million are consumed in the country, and the rest are exported abroad.

Al-Falih announced a reduction in exports, although he stressed that no agreement was reached between the major oil producing countries to "lower oil production".

"It is too early to talk about a particular move," he said in response to the question of the possibility of reducing production to stop price drops. "We must consider all factors."

Oil companies are organizing a meeting in Abu Dhabi to investigate the possibility of returning to limiting oil production, and price increases cause fear of collapse, as in 2014.

The meeting will be attended by oil ministers from Russia, Saudi Arabia, Kuwait, Venezuela and the United Arab Emirates. In Abu Dhabi, no decision is expected, but rather recommendations before the OPEC meeting scheduled for December in Vienna.

The price of oil between the rise in production of some large countries and the fear of falling demand fell by about twenty percent in one month after reaching the four-year high at the beginning of October.

M.S. B (AFP, Reuters)


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