Saudi Arabia Cuts Output in Line with OPEC Decision
Saudi Arabia on Saturday cut crude output by more than 320,000 barrels per day (bpd) in line with OPEC's decision to reduce production by one million bpd from September 1, a Saudi oil official said.
"We have cut our production to bring us in line with our new quota and we have informed our clients of this," the official was quoted by the Gulf Daily News as telling the London-based Al Sharq Al Awsat.
Following the decision by the Organization of Petroleum Exporting Countries (OPEC) to slash output to bolster flagging prices, Saudi Arabia's quota was cut by 324,000 bpd to 7.541 million bpd from 7.865 million bpd.
Other OPEC member states "will respect their new quotas, despite claims that OPEC produced a surplus of 500,000 bpd over its August quota," fixed at 24.201 million bpd, added the official, whose country is the world's largest producer and exporter of oil.
The official said that the Saudi cut was instigated because of the "world recession which had negative repercussions on the oil market," according to the agency.
"Recession and instability in the levels of crude demand necessitated restrictions in the supply of crude on the international market to preserve oil prices," he said.
A barrel of benchmark Brent North Sea crude for October delivery was selling in London on Friday for $26.27 from $25.80 a week earlier, said the paper.
In New York, the light sweet crude October contract was little changed at $26.65 a barrel from $26.80 a week earlier – Albawaba.com
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