Published On: Sun, Jan 15th, 2017

Saudi Arabia cuts oil output to its lowest, vows for further reduction

saudis cuts oil output

Abu Dhabi: The world largest oil exporter Saudi Arabia has cut down its oil output to such a lowest level that previously seen in February of 2015. The country promised to lead the OPEC and non-OPEC producers to eradicate a global glut.

Saudi Arabia’s Energy Minister Khalid al-Falih said on Thursday that the world’s largest oil dealer will lead the OPEC and non-OPEC producer to eradicate the global glut and prop up prices. The world’s largest oil exporter has cut the oil output to its much lower level of two years that had fallen below almost 10 million barrels per day.

The details has been unveiled by Energy Minister in which he promised for further reduction of oil output which means the kingdom will break the record of lowest level of February 2015 and will mark a new one.

While speaking to the Atlantic Council Global Energy Forum in Abu Dhabi, Khalid revealed the Kingdom currently bearing the non-significant below of 10 million barrels per day and planned to make it even deeper.

He used to say the oil market will expectedly tighten in next two to three years, this means Saudi Arabia cut oil output to 486,000 barrel per day but the view of Falih is: “We have been moving toward rebalancing the markets for some time,”.

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He also predicted world largest oil exporter Saudi Arabia has receive the extra demand of 1 million barrel per day this year.