Iran expects to increase production in Saudi Arabia and reduce shipping crude

Iran expects to increase production in Saudi Arabia and reduce shipping crude



7/13/2017 0:00

Reuters / Follow - up to the morning
at a time when the Iranian Oil Ministry predicted the arrival of crude output to 4 million barrels per day by the end of 2017, a source in the Saudi oil sector , announced that his country will cut crude shipments to its customers in August by more than 600 thousand barrels per day to bring about a balance in the face of rising consumption local during the summer.
And oil prices climbed by more than one percent on Wednesday to enhance the previous day 's gains as the US government cut its crude production next year , as well as falling fuel stocks.
The US Energy Information Administration late on Tuesday it expects to increase crude oil production next year to 9.9 million barrels per day from 9.3 million barrels per day this year , up 570 thousand barrels per day.
This less than forecast last month , an increase of 680 thousand barrels per day on an annual basis, which encouraged the upward trend of prices.
At the same time, the production of the Organization of the Petroleum Exporting Countries still (OPEC) is high despite the Organization pledged to cut production during the period from January to the end of March next year , in order to create a balance between supply and demand in the market and support prices.
For his part , Iran 's deputy oil minister said on Wednesday that Tehran expects the arrival of the country 's production of crude to four million barrels per day by the end of 2017
, said Amir Hossein Zamani Nia Deputy Oil Minister for Trade and International Affairs , told reporters in Istanbul: "By the end of 2017 we hope to arrive production of about four million barrels per day. "
Iran reached the production of about 3.8 million barrels per day in months
past.
Meanwhile , a source in the Al - Saud oil sector: that his country will cut crude shipments to its customers in August by more than 600 thousand barrels per day to bring about a balance in the face of rising domestic consumption during the summer while continuing commitment levels of production undertaken by the inside (OPEC).
A source familiar with the kingdom 's oil policy on Wednesday: "There is a strong demand for Saudi crude but we are committed to our pledges for (OPEC).
" In order to meet its share in the agreement (OPEC) , and to cover domestic demand during the summer, has implemented Saudi Arabia significant cuts in global allocations by more than 600 thousand barrels per day for the month of August. "
the source added that crude exports for the month of August will drop to the lowest level this year at around 6.6 million barrels per day.
and will be reduced crude allocations to Asia in August by about 200 thousand barrels per day to 3.5 million barrels per day , while will be reduced allocations flying to Europe by about 70 thousand barrels per day to 520 thousand throwing Daily.
Crude exports to the United States would be reduced from 800 thousand barrels per day in August , according to the source.

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