Saudi Arabia extracts too much oil
Saudi Arabia increases its commercial oil reserves having overcome the record of 2002. Bloomberg reports that currently they have reached 326.6 mln barrels.
This is because Err- Riyadh has reduced oil export to 7 mln barrels a day, however, the extraction stays at extremely high level – 10.23 mln barrels a day. Saudi Arabia loads the surplus volumes into its storages.
“The fall of the export of Saudi Arabia reflects the current situation in the market. In autumn a serious competition between the countries-exporters arose and many of them sell oil cheaper than Saudi Arabia”, M. Ramadi said, independent analyst from London.
Oil reserves of Saudi Arabia have started to set records in May, in June the extraction in the country reached 10.56 mln barrels a day having exceeded the registered maximum of 1980.
On the background of the tremendous surplus in the market Err-Riyadh had to slightly reduce the production, in August it produced 10.27 mln barrels, in September – 10.23 mln barrels a day. However, this is still too much.
