{"id":2022202,"date":"2023-09-05T13:49:01","date_gmt":"2023-09-05T17:49:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oil-prices-soar-after-saudi-arabia-extends-crude-production-cut-to-december\/"},"modified":"2023-09-05T13:52:56","modified_gmt":"2023-09-05T17:52:56","slug":"oil-prices-soar-after-saudi-arabia-extends-crude-production-cut-to-december","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oil-prices-soar-after-saudi-arabia-extends-crude-production-cut-to-december\/","title":{"rendered":"Oil prices surge as Saudi Arabia extends crude production cut until December."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Foil-prices-soar-after-saudi-arabia-extends-crude-production-cut-to-december%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2022202&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Crude \u200bOil Prices Soar as Saudi Arabia Extends Production Cut<\/h2>\n<p>Crude oil prices have skyrocketed following Saudi Arabia&#8217;s decision to \u2064extend \u200bits\u200d voluntary \u2064production cut of 1 million barrels per day (bpd) for another three months until the end of December\u200c 2023, according \u200bto <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/group-trying-to-convince-asians-that-america-is-oppressive-has-ties-to-chinese-state-media\/\" title=\"Group Trying To Convince Asians That America Is Oppressive Has Ties To Chinese State Media\">state-owned media<\/a>.<\/p>\n<p>Under this extension, Saudi Arabia&#8217;s output will reach 9 million bpd in October, November, and December.<\/p>\n<blockquote><p>&#8220;The source stated that this voluntary cut decision will be reviewed monthly \u200bto consider deepening the cut or \u200bincreasing production,&#8221; the Saudi Press Agency <a href=\"https:\/\/www.spa.gov.sa\/w1958804\" target=\"_blank\" rel=\"noopener\">reported<\/a> on Sept. 5.<\/p><\/blockquote>\n<h3>Related Stories<\/h3>\n<ul>\n<li><a href=\"http:\/\/www.theepochtimes.com\/us\/analysis-is-brics-poised-to-dethrone-us-in-global-oil-production-5481885\">ANALYSIS: Is \u2062BRICS Poised to Dethrone\u2062 US in Global Oil Production?<\/a> (8\/29\/2023)<\/li>\n<li><a href=\"http:\/\/www.theepochtimes.com\/article\/more-investment-needed-in-oil-and-gas-production-or-well-live-shorter-more-miserable-lives-report-5481913\">More Investment Needed In Oil and Gas Production Or We&#8217;ll Live \u200dShorter, More Miserable\u2062 Lives: Report<\/a> (8\/28\/2023)<\/li>\n<\/ul>\n<p>&#8220;The source also noted that this cut is in addition to the voluntary cut previously announced by the kingdom\u2064 in April 2023, which extends until the\u2062 end of December 2024.&#8221;<\/p>\n<p>The news of the production cut extension has caused October West Texas Intermediate (WTI)\u2064 crude futures \u2062to surge by as much as 2 percent, reaching above $87 a barrel on the New York Mercantile Exchange. Brent, the international benchmark for oil prices, has surpassed \u200b$90\u200c a barrel on London&#8217;s ICE Futures exchange.<\/p>\n<p>Year-to-date, U.S. and Brent have seen an increase of 8 percent and 5 percent, respectively.<\/p>\n<h2>Big Trouble in China<\/h2>\n<p>Major oil producers around the world \u200bare\u200d growing concerned about\u200b China&#8217;s ongoing economic\u200b slowdown, which could have a negative impact on \u200benergy demand.<\/p>\n<p>In August,\u2063 the Caixin Services and Composite Purchasing Managers&#8217; Indexes (PMIs) <a href=\"https:\/\/tradingeconomics.com\/china\/services-pmi\" target=\"_blank\" rel=\"noopener\">weakened<\/a> \u2064to 51.8 and 51.7, respectively, both indicating expansion but\u2063 at their lowest levels since January.<\/p>\n<p>This comes after the \u2062National Bureau of Statistics (NBS) reported that <a href=\"https:\/\/www.theepochtimes.com\/china\/chinas-manufacturing-activity-shrinks-fifth-straight-month-5483886\" target=\"_blank\" rel=\"noopener\">manufacturing activity \u200bin China contracted<\/a> for the fifth consecutive month in August.<\/p>\n<p>Despite the economic slowdown, China&#8217;s oil imports have remained strong, with a year-over-year increase of over 12 percent in the first seven months of 2023, totaling nearly 326 million\u200b metric tons. Crude imports in July\u200b were up 17 percent compared to the same period last\u2062 year.<\/p>\n<p>However, there are concerns about <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/north-korea-leather-clad-kim-jong-un-confirms-new-type-icbm-launch\/\" title=\"North Korea: Leather-Clad Kim Jong-un Confirms 'New-Type ICBM' Launch\">long-term demand<\/a> from China, with some \u2062experts \u200dsuggesting that India \u2063offers greater potential for oil demand growth due to its robust economy.<\/p>\n<blockquote><p>&#8220;China has\u2063 been\u200d supporting the global\u2064 crude demand for the \u2064past 20 years, but in the coming three to five years, China&#8217;s demand is going to peak and then it\u2063 will start to decline. The global market has to look at India or other countries for demand resilience,&#8221; said FGE Chairman Fereidun Fesharaki during a panel discussion at the Asia Pacific Petroleum Conference (APPC) 2023.<\/p><\/blockquote>\n<p>Kang Wu, global head of demand research \u2062at S&#038;P\u2064 Global, warned that peak oil\u2063 demand\u2063 in China will\u200c arrive earlier than in India due to the emerging market&#8217;s &#8220;economic expansions and a young population.&#8221;<\/p>\n<p>Additionally, a report from China&#8217;s largest oil company Sinopec suggests that national gasoline demand may have already peaked due to \u2062the increasing adoption of new energy vehicles, which has risen by 38 percent this year.<\/p>\n<h2>Oil Markets Feeling Tight<\/h2>\n<p>While concerns about \u2064demand persist, data indicates that <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/buttigieg-passing-spending-bills-important-to-reduce-inflation\/\" title=\"Buttigieg: Passing Spending Bills 'Important' to Reduce Inflation\">global oil markets<\/a> are tightening and will shift into a deficit this month.<\/p>\n<p>&#8220;Our balance shows \u200cthat the market will remain \u200cin deficit over 2024,&#8221; wrote\u2064 Warren Patterson, the head of commodities strategy at ING, in a <a href=\"https:\/\/think.ing.com\/articles\/tightness-takes-hold-of-the-oil-market170823\/#a1\" target=\"_blank\" rel=\"noopener\">research note<\/a>.<\/p>\n<p>ING analysts predict further increases in oil\u200b prices, with WTI and Brent reaching $92 and $88 per barrel, respectively, in the fourth quarter. They also forecast that WTI and Brent will climb\u200d to $93 and $96 in \u200dthe fourth \u200bquarter of next year.<\/p>\n<p>&#8220;The assumption behind our 2024 forecasts is that OPEC+ sticks to its \u2063planned production targets, while the additional voluntary\u200c cuts from a handful of OPEC+ producers also continue through 2024,&#8221; added Mr. Patterson.<\/p>\n<p>Ben Luckock,\u2063 co-head of oil trading at Trafigura, explained during an \u200bAPPC\u200b panel \u2063discussion that oil is \u2064vulnerable to price spikes &#8220;because \u2062of the long-term \u2063underinvestment in new oilfields.&#8221;<\/p>\n<p>In the U.S., drilling activity has slowed down this year, with the number of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oil-prices-soar-after-saudi-arabia-extends-crude-production-cut-to-december\/\" title=\"Oil prices surge as Saudi Arabia extends crude production cut until December.\">active oil rigs decreasing<\/a> by about 15 percent since the beginning of the year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Saudi Arabia has decided to extend its voluntary production cut of 1 million barrels per day until the end of December 2023. This move has caused a surge in crude oil prices. During October, November, and December, Saudi Arabia&#8217;s output will be limited to 9 million barrels per day.<\/p>\n","protected":false},"author":278,"featured_media":2022203,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2022202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2022202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/278"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2022202"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2022202\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2022203"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2022202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2022202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2022202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}