EMEA News
Saudis Boost Exports But Insist OPEC Members Should Cut Output to Low End of Deal Target
Saudi Arabia's stance as the main driver of the Organization of the Petroleum Exporting Countries' (OPEC) deal to reduce global production seemed at odds with news on Thursday that its crude oil exports rose to 7.812 million barrels per day (bpd) in September, an increase of 507,000 bpd versus August, according to official data.
The Saudis also produced slightly more crude - 10.65 million bpd in September – compared to August's 10.63 million bpd.
Sadad al-Husseini, an energy consultant and former senior executive for Saudi Aramco, told media, "The exports figures suggest that they will not give up a critical card that they are going to use in the OPEC negotiations to freeze or reduce OPEC production before they reach such an agreement at the November meeting."
However, Khalid al-Falih energy minister for the Saudis, told Al-Arabiya TV that he is optimistic about the ratification later this month of OPEC's plan to reduce output to a range of 32.50 to 33 million bpd - its first output cut since the 2008 financial crisis: "I'm still optimistic that the consensus reached in Algeria for capping production will translate, God willing, into caps on states' levels and fair and balanced cuts among countries."
Falih said the oil market is becoming balanced and that "reaching (a decision) to activate that ceiling of 32.5 million bpd will speed up the (market) recovery and will benefit producers and consumers."
Meanwhile, deal boosters downplayed the potential of wild card Iran to cause negotiations to collapse. "Iran is a particular situation and needs particular treatment; they will not have the same rule for the reduction," said Nouredine Bouterfa, energy minister for Algeria, adding, "We will study what the best solution is for Iran."
Mohammed al-Sada, energy minister for Qatar, was equally upbeat about Iraq as well as the Islamic republic, noting that "We are discussing with both countries and….looking at various ways and means of coming to a mutual understanding."
A meeting on Thursday by OPEC members that was widely viewed as the final diplomatic push to foster ratification of the output cutback deal took place without the energy ministers of Iran or Iraq attending.
