After taking the news headlines for a couple of days due to the ‘purging’; today, Saudi takes the headlines today as it unveils another step for their output cut for December and for the rest of 2017. A spokesman for the energy ministry unveiled their plans today while coinciding with the additional reports of decreased shipments to the United States.
As of today, all-in-all, eleven Saudi princes have been nabbed coupled with dozens of on-going and former ministers. The charges for the ministers and Prince are as follows; corruption, graft or financial malfeasance.
Output Cut Details
On the most recent decision from the energy ministry, they unveiled that they are looking to cut their crude exports by a massive 120,000 barrels per day by December from November. According to the world’s top oil exporter, they are looking to take their exports and shipment to nothing more than 7 million barrels per day this November.
On the most recent news, the Organization of the Petroleum Exporting Countries and other non-affiliated countries which are led by Russia have come to an agreement to extend the output cut by another 1.8 million barrels per day starting January until March of 2018.
The producers are also expected to meet again on November 30 in Vienna; the OPEC and non-OPEC countries are looking to extend the output cut which will expire in March of 2018. Analysts have been keen on noting that the output cut will be extended and will most likely push the oil prices higher and keep the prices volatile.
The likelihood of the extension is looking to lean on the positive outlook that Russian President Vladimir Putin has on the whole moved.
U.S. Import Cuts
As of that note, the shipment going through in the U.S.A. is looking to deduct by a massive 10% on a month-on-month basis. According to analysts’ calculations, the vessel-tracking data estimated flows in October were at 6.989 million a day.
Looking at the past reports, the U.S. managed to tally a total number of 816,000 imported barrels per day from Saudi Arabia according to the reports of the United States government’s Energy and Information Administration. The data from October also showed that the U.S. was importing a massive average of 506,000 barrels per day.
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