Monday, December 28, 2015

Russia Blames Saudi Arabia For Destabilizing Oil Markets

© Ruslan Shamukov/ITAR-TASS

TASS: Russia’s energy minister blames Saudi Arabia for destabilized oil market

According to Alexander Novak, Saudi Arabia increased its oil production by 1.5 mln barrels per day

MOSCOW, December 28. /TASS/. Saudi Arabia has destabilized oil market by increasing its oil output by 1.5 mln barrels per day, Russia’s Energy Minister Alexander Novak said in an interview with Rossiya 24 TV channel.

"This year Saudi Arabia has ramped up production by 1.5 mln barrels per day, which in fact destabilized the situation on the market," - he said.

Update: Saudi Arabia is being hurt by low prices .... Saudi Arabia budget deficit swells on oil price fall (BBC). And I predict that these new price increases on Saudi consumers is not going to go over well in the Kingdom .... Saudi to boost petrol prices by more than 50% (AFP).

5 comments:

James said...

" Saudi to boost petrol prices by more than 50%"
Oooooh, somebody blinked.

Don Bacon said...

Novak is incorrect. KSA has only increased production about 0.5 mbd compared to a year ago. That's in a world market of about 100 mbd. And petrol rices are set by the market, supply and demand, with some futures speculation thrown in.

Jay Farquharson said...

James,

It's domestic prices in KSA, they are lifting the subsidies, it's not the export product or crude. It will cause unrest in the Kingdom, so expect the beheadings to double in 2016.

Don Bacon said...

KSA uses a lot of petroleum, which is one reason they are building a nuclear energy capability.

James said...

"It's domestic prices in KSA, they are lifting the subsidies, it's not the export product or crude."
Yes, I know that, my comment stands.