52387
Worst-Case Scenarios Facing Saudi Regime
Worst-Case Scenarios Facing Saudi Regime

Worst-Case Scenarios Facing Saudi Regime

Worst-Case Scenarios Facing Saudi Regime

Saudi Arabia faces the prospect of much deeper—and financially painful—oil production cuts after Iraq joined the queue of group members seeking immunity from the deal hatched in Algiers.
In addition to Iraq, the second-biggest exporter in the group, Iran has already sought to exclude itself. Output is also recovering from fields in Nigeria and Libya, two more countries that were exempted from the Algiers deal because violence has wrought havoc in their oil industries. Taken together, more than a third of OPEC’s production now stand outside the plan, Bloomberg reported.
The worsening OPEC equation presents Saudi Arabia with a difficult choice after its Algiers U-turn: carry a greater burden within the group, ceding market share to other producers, or lose credibility by softening the terms of the deal.
In a worst-case scenario, Saudi Arabia will have to cut crude production by more than 1 million barrels per day, sending the kingdom’s output to a two-year low.
In Algiers, OPEC agreed to reduce its production to a range of between 32.5 and 33 million bpd.
The group agreed that Libya, Nigeria and Iran should receive special treatment as they are seeking to increase their production after experiencing disruptions due to internal violence, sabotage and sanctions.

Short URL : https://goo.gl/t4SuKs
  1. https://goo.gl/Gzlmxh
  • https://goo.gl/Is4QEt
  • https://goo.gl/hKgSqD
  • https://goo.gl/lkXfY4
  • https://goo.gl/XE9vaf

You can also read ...

Abadan Refinery Gasoline  Production Capacity at 12 ml/d
In line with efforts to boost the country's oil refining...
Russia Launches First Floating Nuclear Plant
To meet its growing electricity needs while developing oil...
Germany Brushes Aside US Objection to Nord Stream 2
Germany brushed aside American concerns about a major natural...
New Anti-Pollution Shipping Rules to Raise Oil Prices
International efforts to reduce air pollution has lifted the...
US Petroleum Demand High
The American Petroleum Institute reported that the first four...
Iran's downstream market has a vast potential for attracting foreign companies.
US President Donald Trump’s decision to quit Iran's...
Annual Peak Power Demand  to Increase
The total peak electricity demand hours are predicted to reach...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus