State-run Saudi Aramco plans to pump about 9.77 million barrels a day next month, in what would be its smallest output since January 2015. That’s about one million barrels a day less than the 10.72 million it pumped in November 2016. The Saudis disclosed their production plans on Monday when the energy ministry announced that Aramco will supply buyers with less oil than they asked for in November. Much less.
And that’s about all the world’s biggest oil exporter — and linchpin of a global plan to bolster crude markets — can do to prop up prices: pump and sell less of the stuff. The country’s customers told the state oil company, known formally as Saudi Arabian Oil Co., that they wanted more than 7.7 million barrels of crude a day. The producer told them they could only have 7.15 million barrels a day.
The Saudis, who said they expect other participants in the output-cuts agreement to follow their “extraordinary leadership,” must be hoping that their partners in the deal don’t oblige, and steal, the kingdom’s customers.
Source Credit: Financial Post
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