Saudi Arabia to slash oil exports by 800,000 barrels per day

Oil Surges Above $52 on Saudi Assurances China Trade OptimismMore

The government of Saudi Arabia said in a statement Wednesday that U.S. energy consultancy DeGolyer & MacNaughton had concluded that its oil reserves total 268.5 billion barrels.

OPEC and its allies decided last month to cut their overall output by 1.2 million bpd starting January to shore up sliding prices.

Falih said Saudi Arabia's oil production has fallen to 10.2 million barrels per day, from 11 million last May.

Further easing concerns of global oversupply, U.S. commercial crude oil inventories decreased by 1.7 million barrels from the week ending January 4, the U.S. Energy Information Administration reported on Wednesday, which marked the biggest fall since November 2018.

Entering the debt market is a move aimed at helping the company to finance its planned acquisition of a 70% stake in petrochemical firm SABIC from the kingdom's Public Investment Fund (PIF).

Natural gas reserves also grew from 302.3 trillion cubic feet (8.56 trillion cubic metres) to 324.4 trillion cubic feet (9.2 trillion cubic metres), the ministry said.

Addressing a press conference on Wednesday, Minister Khalid al-Falih said that the latest audit "confirms our belief that Aramco is the most valuable company in the world".

After Brent crude hit Dollars 85 a barrel in early October, prices dived more than 40 per cent over the following two months due to oversupply and fears of a trade war between the United States and China that could slash energy demand.

It said the new figures have been backed by an independent third-party certification by leading consultants DeGolyer and MacNaughton (D&M).

In addition to Saudi Aramco concession area reserves, the Kingdom also owns half of the oil reserves in the Partitioned Zone jointly owned by Saudi Arabia and the State of Kuwait.

The Kingdom previously announced that oil and gas reserves were 264 billion barrels of oil and 307.2 trillion standard cubic feet of gas respectively as of December 31, 2017.

"We are pursuing a total shift in paradigm in the gas station perception among the public, from what people think of gas stations now as a divergence from a main route to get convenience service to a destination of services on major highways, to work, or simply on the way back home", Al-Gahtani said. They said that the central bank will be especially cautious about pushing ahead with interest-rate increases after raising them four times past year.

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