Saudi Arabia to restrain oil exports in March, confident cuts will stabilize market

Saudi Arabia's Oil Minister Khalid al-Falih listens during a news conference after an OPEC meeting in Vienna, Austria, November 30, 2017.

Heinz-Peter Bader | Reuters

Saudi Arabia’s Oil Minister Khalid al-Falih listens during a news conference after an OPEC meeting in Vienna, Austria, November 30, 2017.

Saudi Arabia will restrain its oil exports in March despite lower domestic need for crude as OPEC’s leader is actually pushing to eliminate fully the global oil glut in addition to combat worries about a brand new cycle of oil cost weakness.

The kingdom will keep its crude exports below 7 million barrels per day (bpd) in March, despite a maintenance shutdown of the 400,000 bpd SAMREF refinery, the Saudi energy ministry said, confirming a plan given earlier by industry sources.

“Saudi Arabia remains focused on working down excess oil inventories,” a ministry spokesman said in a statement.

“Market volatility is actually a common concern for producers in addition to consumers, in addition to the Kingdom is actually committed to mitigating which volatility in addition to moderating its negative impacts by responsibly meeting its pledges” under an OPEC-led supply cut deal.

The Organization of the Petroleum Exporting Countries in addition to outside producers including Russia are reducing output to get rid of a supply glut. The pact began a year ago in addition to has been extended until the end of 2018.

The cut has boosted oil prices, which in January topped $71 a barrel for the 1st time since 2014. although crude has since slid in addition to hit a 2018 low of $61.76 which week, pressured by rising U.S. output in addition to forecasts oversupply may persist.

Saudi Arabia’s Energy Minister Khalid al-Falih sounded an upbeat note even after the cost drop, saying on Wednesday he was sure cooperation between OPEC in addition to its non-OPEC allies will continue to stabilise the market.

“I am confident which our high degree of cooperation in addition to coordination will continue in addition to bring the desired results,” Falih told an industry conference attended by Russian Energy Minister Alexander Novak in addition to OPEC Secretary General Mohammad Barkindo.

“Market volatility is actually unfortunate although ultimately which is actually the fundamentals which I watch.”

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