Keeping up the fight for market share? Saudi oil production inches up in November

Published December 14th, 2014 - 06:17 GMT

Crude oil supplies from Saudi Arabia inched up in November from a month earlier, an industry source said, signalling no change in the kingdom's supply, despite a global oil glut and a steep fall in prices.

Saudi supplied 9.420 million barrels of crude oil per day in November, up 40,000 bpd from October, an industry source familiar with the matter told Reuters said on Friday.

It supplied 9.36 million bpd in September.

Oil fell $2 a barrel to new five-year lows on Friday after the world's energy watchdog forecast even lower prices on weaker demand and higher supplies next year.

Benchmark Brent oil tumbled to below $62 a barrel and U.S. crude slumped to under $58 to extend Thursday's landmark fall below $60.

Opec heavyweight Saudi Arabia pumped 9.610 million barrels of oil per day in November, some 80,000 bpd less than its production in October, the source said.

Supplies to the market, both domestically and for export, may differ from production depending on the movement of barrels in and out of storage.

On Friday, the Paris-based International Energy Agency which coordinates the energy policies of industrialised countries, cut its outlook for demand growth in 2015, triggering another drop in prices.

Oil prices have fallen by 45 per cent since June with the sell-off gaining pace after OPEC decided last month to keep its output target unchanged.

When Opec decided last month against cutting production, Saudi Oil Minister Ali al-Naimi said the market would stabilise itself eventually, suggesting lower prices would ultimately lead to a spike in global demand, which will in turn would lead to a gradual price recovery.

On Wednesday, Naimi shrugged off suggestions that Saudi Arabia might cut production to reverse the deepest price slump in years, saying the kingdom's output had remained steady through last month.

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