The highest decline in OPEC production of oil in two years
The Organization of the Petroleum Exporting Countries (OPEC) and its allies have cut their production by 1.2 million barrels per day (bpd).
Referring to OPEC's sense of the importance of cutting production to stop falling crude prices, Saudi Arabia, the world's largest oil exporter, cut its crude exports last month by 500,000 bpd, Bloomberg news agency reported.
The kingdom's cut in its oil exports coincided with an undeclared drop in Iranian oil exports following US sanctions on Tehran and oil production disruption in Libya due to security problems.
OPEC output fell 530,000 bpd to 32.6 million bpd last month, the biggest drop since January 2017, when OPEC set a clear strategy to curb oil surpluses on world markets after US oil production increased at the time. .
OPEC and non-OPEC oil allies, notably Russia, known as OPEC Plus, agreed on December 7 to cut production by 1.2 million barrels per day (bpd) for a period of six months from January 1.
Despite the agreement, crude prices continued to fall to their lowest level in more than a year.
On the other hand, the price of futures contracts for Brent crude oil for global oil on Wednesday, 5.1% to about $ 56 a barrel, almost 35% below the highest level in 4 years and reached in October.
This comes as dealers in the global oil market, that the reduction of production of the "OPEC Plus" insufficient to reduce supply in the market in light of the increase in oil production in the US rock, and traders are concerned about the potential for slowing oil demand due to slowing global economic growth , And the continuing trade dispute between the United States and China.