Saudi Arabia is reducing oil supply and OPEC may cut too

[DonViejo]

Source: CNN


By Zahraa Alkhalisi, CNN Business

Updated 8:41 AM ET, Mon November 12, 2018

Abu Dhabi, UAE (CNN Business) - Saudi Arabia will reduce oil supply next month in response to lower demand, and more cuts could follow next year.

Speaking at a conference in Abu Dhabi, Saudi energy minister Khalid Al Falih said the kingdom's oil output would fall by 500,000 barrels per day in December.

Members of the Organization of Petroleum Exporting Countries (OPEC) and its allies could reduce supply further next year if needed, he added.

"The consensus among all members is that we need to do whatever it takes to balance the market," Al Falih said. "If that means trimming supply by a million [barrels per day], we will do it."

Read more: https://www.cnn.com/2018/11/12/business/oil-prices-opec-adipec/index.html

---

Trump: Oil prices should be much lower

BY BRETT SAMUELS - 11/12/18 02:01 PM EST

President Trump on Monday said he hopes Saudi Arabia and OPEC don't cut oil production hours after the Saudi energy minister indicated the country would reduce its output next month.

Link to tweet

The president, who has no public events scheduled for Monday, commented on oil prices the same day that it would cut its oil output by 500,000 barrels per day in December.

CNN reported that Saudi Energy Minister Khalid Al Falih said members of OPEC could further reduce supply next year to balance the market. The organization could reach a decision at its Dec. 6 meeting in Vienna.

"The consensus among all members is that we need to do whatever it takes to balance the market," Al Falih said, according to CNN. "If that means trimming supply by a million [barrels per day], we will do it."

more
https://thehill.com/homenews/administration/416274-trump-oil-prices-should-be-much-lower

[Me.]

1. Low Demand?

You mean like other sources of energy that other countries are encouraging?

[leftynyc]

2. Oil prices have tanked in the last month or so

I don't drive so I'm wondering if everyone has noticed a steep drop in gasoline prices. Because you most certainly WILL see a rise due to this news.

[Doreen]

5. In all of the years I have been driving I have alway noticed that when the gas prices go down

then soon after they shoot up past where they were before the prices went down. It is like they are saying "Hey, remember when gas prices were like this?, Well, they are going up double or triple shortly after this temporary low."

[modrepub]

7. Gas Price Drop?!?

Ok..sorry...yes I've seen the price of diesel for my car drop,...


...as I was saying it has gone down some...


...you can't be serious can you?!? Gas actually following the wholesale market?!?


Thanks for the question, I had a good laugh (hope you did too).

[leftynyc]

8. I don't drive

So I barely notice the price of gas but figured since when prices go up it makes the news, the same wiuld be true for the opposite. Oil prices have dropped more than $10 in the last few months, gas prices should follow. Your very funny reaction tells me otherwise.

[machoneman]

3. Another public slap in the face generated by the Saudis!

No one respects this orange turd! No one!

[NewJeffCT]

4. I'm sure Super Negotiator

will be all over this

[left-of-center2012]

6. Price of a barrel of crude oil

I just googled and see MarketInsider shows a barrel of crude oil selling at $58.89;
at it’s highest price ever (in June 2008) crude oil peaked at $136.31.

[Maeve]

9. "Oil prices should be much lower based on supply"

Duh.....That is why they plan to cut production and reduce the supply!

Does he have any idea how this stuff works????

[FormerOstrich]

10. The election is OVER...

Saudi Arabia upped production to cover shortfalls from the Iran sanctions. They covered Trump through the election.

No telling what it cost us for the low gas prices through late summer and election. A journalist life, maybe. I'd rather pay more at the pump.

[mr_lebowski]

11. So, just to picture what 500,000 barrels would actually look like ... I did some quick calcs ...

Using 22.5" as barrel diameter, and a highway lane as 12ft across ...

Imagine an 8-lane highway ... and imagine oil barrels spread across it ... there'd be 51.2 barrels that would fit across the 8 lane highway. Now imagine row after row after row, of 51.2 barrels, stretching off down the 8 lane road.

You know how far down the road that row of barrels would go, before there were 500,000 barrels?

Almost 3.5 freaking MILES ... and that's just what they're CUTTING ... they actually produce like 22 TIMES more than that PER DAY.

Like 75 MILES worth of barrels across an 8 lane freeway.

And that's only like 1/6th of what the WORLD produces PER DAY.

And some go 'derp, no way the climate is changing from human action!'