Saudi to cut oil exports by 500,000 barrels per day in December

Saudi to cut oil exports by 500,000 barrels per day in December

The US also hit a record-high of 11.6m bpd in November, CNBC reported.

President Trump is expressing his opposition to Saudi Arabia and OPEC's possible intentions to curb oil production. "In contrast, if oil prices fall it will benefit the currencies of major oil-importing emerging markets including the Indian rupee and Turkish lira". The contract continued to drop in post-settlement trading, falling $1.48 to $58.71 a barrel by 3:34 p.m. EST (1834 GMT). Brent also traded lower in post-settlement activity, dropping $1.13 to $69.05 a barrel.

United States energy firms had last week added 12 oil rigs in the week to November 9 looking for new reserves, bringing the total count to 886, the highest level since March 2015, Baker Hughes energy services firm had said on Friday.

In light of these developments, the world's traditional oil leader and unofficial OPEC leader, Saudi Arabia, is seeking to boost oil prices in the near-term to win enough time before its sovereign wealth fund starts generating more substantial returns on its investments.

Trump's tweet comes one week after the US reimposed sanctions on Iran's oil industry.

A majority of OPEC and allied oil exporters support a cut in the global supply of crude, Oman Oil Minister Mohammed bin Hamad al-Rumhi was cited by Reuters as saying.

Saudi Arabia has said it will trim oil exports by 500,000 barrels per day (bpd) in December, as major producers met to consider cuts to shore up declining prices.

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"Many of us share this view", the minister said when asked about the need for a cut. So, we know that supply is going to be reduced and in the medium term we can expect higher oil prices.

OPEC and the International Energy Agency release their respective monthly reports on the outlook for oil supply and demand later this week. The cut represents a reduction in global oil supply of about 0.5 percent.

Output from the world's top oil producers Russian Federation, the United States and Saudi Arabia has risen by 1.05 million bpd in the last three months, based on official output figures.

This has left OPEC scrambling to adjust its own output, which, at around 33.3 million bpd, accounts for roughly a third of total global daily supply. A drop off in crude oil prices in the recent period has weighed on oil and gas companies.

"The request America made to Saudi Arabia and other OPEC countries is to be sure that if there is any loss of supply from Iran, that we will supply that".

But cheaper crude oil means lower profit for oil producers, and thus countries such as Saudi Arabia are now mulling a cut in production - which would go against their earlier promise of increasing production.

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