Oil prices have increased after Saudi Arabia started with negotiations with customers on the reduction of sales of crude oil in accordance with the plan of OPEC (Organization of Petroleum Exporting Countries) to reduce the world’s oil supplies, as reported by Reuters.
In November 2016, OPEC promised to cut production in order to increase prices.
In accordance with the agreement, Saudi Arabia promised to cut production by 486,000 barrels per day, or 4.61 % compared to October, when it produced 10.544 million barrels a day.
“Aramco (” Arab-American Oil Company “) is talking with all of its customers about possible cuts that should start in February and the possible scenarios (for supply),” as reported by Reuters.
“Nothing has been confirmed yet,” said the source, adding that the scenarios are referring to the cuts of 3-7 %.
Investors suspect that OPEC could make smaller cuts than they promised, but several sources told Reuters that the world’s largest exporter of oil (Saudi Arabia) is planning to reduce exports in line with OPEC’s cuts.
(Source: klix.ba)
