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OPEC will hold a meeting this month, Saudi Arabia promised not to let the oil market supply overflow

OPEC will hold a meeting this month, Saudi Arabia promised not to let the oil market supply overflow

September 2, 2016

[China paint information]

Saudi energy minister Khalid al Falih said in an interview on Wednesday (August 31) that Saudi Arabia would not increase production to the level of production capacity and flood the market supply. At present, the member countries of the organization of Petroleum Exporting Countries (OPEC) will hold an informal meeting in September to discuss how to stabilize oil prices

Falih said, "despite the decline in oil prices and the economic slowdown, Saudi Arabia is not worried about global demand." He said that as the world's largest oil exporter, Saudi Arabia has the ability to increase its daily production to a maximum of 12.5 million barrels. At present, faliher is paying an official visit to Asian oil purchasing countries, including China, the country's largest market

he pointed out, "at present, the crude oil inventory is higher than the common level, and the market is in a saturated state. We don't think Saudi Arabia needs to produce at full capacity in the near future. In addition, China's demand is very healthy, and India's consumption is not cooling, and the setting time will be extended."

at a time of oversupply in the global market, Saudi Arabia, in order to protect market share, has always maintained its output close to a record high. Increased supply from us shale oil drillers, among others, has pushed oil prices down more than 50% from the peak hit in 2014

according to the latest data released by Bloomberg, Saudi Arabia's crude oil production reached 10.43 million barrels per day in July, compared with 10.57 million barrels per day in the same period last year

Falih said that due to the opening of two new refineries in Yanbu and Jubail, Saudi Arabia's domestic demand is also growing, with a total daily consumption increase of 800000 barrels

he also pointed out, "Saudi Arabia maintains flexibility in its oil policy. If demand rises, we will increase production to meet such demand."

in Asian trading on Thursday (September 1), Brent crude oil futures rose 0.40% to $47.08 a barrel. However, the international crude oil benchmark still fell by more than half, for example, from $115.74 a barrel in June 2014

Falih stressed, "there is no crude oil price war, and Saudi Arabia's market share in China, the world's largest energy consumer, is not threatened by competition."

in this regard, Russia's crude oil market share in China is expanding. He commented that "for other oil producing countries, this is normal behavior, they just try to maximize sales in China."

OPEC member states will hold an informal meeting on the margins of the International Energy Forum (IEF) held in Algeria on September, and discuss measures to support the oil market with non OPEC oil producing countries such as Russia. Venezuela, which was hit hard by the sharp fall in oil prices, has called for joint action to support oil prices. The Doha production freeze conference in April this year finally broke down due to the differences between Saudi Arabia and Iran

London based analyst abd commented that this equipment is equipped with a "Venturi" vacuum generator ulsamad al awadhi, "Falih's statement shows that Saudi Arabia has no intention to explore the impact of low oil prices on the economies of oil producing countries at present. Saudi Arabia claims that as long as customers ask, they will meet their requirements at any price, which is completely disrespectful to other oil producing countries." Al awadhi was the OPEC representative of Kuwait in

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