The Media Learned about the Demand of Saudi Arabia to Reduce Oil Production because of Coronavirus
OREANDA-NEWS. The media learned about the demand of Saudi Arabia to temporarily reduce oil production in the Organization of Petroleum Exporting Countries (OPEC) members by at least 500 thousand barrels per day in order to avoid a drop in oil demand due to an outbreak of coronavirus in China.
Sources of The Wall Street Journal reported that this is not the only scenario proposed by Riyadh, it can also reduce oil production in the country by 1 million barrels per day. Currently, Saudi Arabia produces about 9.7 million barrels daily.
According to the publication, state authorities fear that the loss of oil revenues will threaten their efforts to diversify the economy. To balance the state budget, it is necessary that oil price exceeds 60 US dollars per barrel.
According to OPEC representatives, the organization will consider a decision to reduce the production of petroleum products at a meeting that may take place next week.
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