Saudi Arabia returned to growth in oil production

Photo: Hasan Jamali / AP

In February 2017 daily oil production in Saudi Arabia grew by more than a quarter of a million barrels. Middle Eastern monarchy back in to increase production after the reduction in the framework of agreements within OPEC

By the end of February 2017, the volume of daily oil production in Saudi Arabia has exceeded 10 million Barr., compared to January it increased by 263 thousand barrels, according to Bloomberg, citing data submitted by the Kingdom in the Organization of countries-exporters of oil (OPEC).

According to the Agency, in February, increasing production, Saudi Arabia compensated for about a third of the January reductions undertaken in the framework of the agreement of OPEC countries and some non cartel countries on joint restriction of oil production.

Earlier it was reported that in January, Saudi Arabia has reduced oil production ahead of schedule, Perepyolkin the original plan by approximately 16%. Bloomberg notes that held in February, the increase in production was not blocked shock reduction Jan. However, it was a confirmation of the recent warning of the Minister of energy Khalid al-falikha, according to which the Kingdom will not be to make sacrifices in order to simplify the life of others. According to Bloomberg, Russia, Iraq and the United Arab Emirates is not yet fully fulfilled its obligations for the reduction of oil production.

“The Saudis are once again doing the breathing in anticipation of the OPEC meeting, trying to get the lagging to fulfill their promises,” – said the head of commodity strategy at RBC Capital Markets.

The next summit of OPEC, on which the members of the cartel is expected to consider the renewal of restrictions on oil production, will take place in Vienna on 25 may 2017.

In early March, al-falih visited the held at the Houston energy conference, where he warned shale oil producers that “free” will not be. In the ensuing behind closed doors meeting with the heads of companies Anadarko, ConocoPhillips, Occidental Petroleum Corp., Pioneer Natural Resources, Newfield Exploration and EOG Resources one of the advisers of the Minister of energy has declared that about unwillingness to make sacrifices for the sake of increasing shale oil production in the United States.

“He said that we and other producers of shale oil should not be confident that OPEC will extend the validity of the restrictions,” the source told Reuters on condition of anonymity.

March 8, 2017, the energy information Administration of U.S. Department of energy (EIA) reported that on the background of the commissioning of all new oil wells commercial oil stocks in the U.S. rose for the week by 8.2 million barrels. (four times higher than forecast), so their total set a new record.

Immediately after that, the oil market suffered a collapse of quotations, to the end of the day, a barrel of Brent fell by more than 5%, and for the next three days — even at 3.3%.

During today’s trading on the stock exchange ICE cost of a barrel of Brent crude oil dropped to $50,33 that was the lowest value since November 30, 2016, when OPEC agreed to reduce daily oil production of the cartel by 1.2 million barrels.

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