BNP Paribas and Societe Generale said Saudi Arabia, the world’s biggest crude exporter, will need to keep decreasing oil production to sustain prices above $100 a barrel despite the Kingdom’s largest reduction in two years, Bloomberg reported.
Saudi Arabia told OPEC last week that it pumped 408,000 barrels a day less last month, about as much as Australia produces.
The output rose in Iran, Iraq and Nigeria, adding to supply that drove benchmark Brent crude futures below $100 this month for the first time since June 2013. Saudi Arabia probably will have to cut a similar amount again to stabilize prices, the banks said.
Mike Wittner, head of oil market research at Societe Generale in New York, said: “We are swimming in crude, and they know that better than anyone because they are the biggest exporter.”
Saudi Arabia told OPEC last week that it pumped 408,000 barrels a day less last month, about as much as Australia produces.
The output rose in Iran, Iraq and Nigeria, adding to supply that drove benchmark Brent crude futures below $100 this month for the first time since June 2013. Saudi Arabia probably will have to cut a similar amount again to stabilize prices, the banks said.
Mike Wittner, head of oil market research at Societe Generale in New York, said: “We are swimming in crude, and they know that better than anyone because they are the biggest exporter.”
Source:
Mubasher
