Russia and Saudi Arabia Can Stop Increasing Oil Production, American Outlet Says

Saudi Arabia and Russia plan to pause the recovery of oil production after several major importers have released part of their strategic oil reserves, according to The Wall Street Journal, citing sources familiar with the discussions. 

It is stated that the capital of Saudi Arabia, Riyadh, is concerned that the decision of the US and other countries to open their oil reserves could cool global demand and affect prices. However, it is also reported that there is no consensus on this issue in the OPEC+ oil alliance.

This statement came after the press service of the Joe Biden administration announced plans to sell 50 million barrels of oil from the country’s strategic reserves to curb price increases. The release of 18 million barrels has already been approved earlier. The remaining 32 million will be sold on an exchange basis in the coming months. A similar amount is planned to be returned to the reserve fund after the situation with prices has stabilized.

Allegedly, the US made such a decision after OPEC and other oil-exporting countries refused to increase oil production. Under an agreement in force since August 2021, the cartel is increasing production by 400,000 barrels per day every month in order to make up for the restrictions of 9.7 million b/d adopted at the height of the pandemic by the end of September 2022. Every month, OPEC+ members discuss the parameters of the deal taking into account the market situation. The next discussion is scheduled already for December 2, 2021.

Ru-Main, 26.11.2021 
Source: Vedomosti 

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