Saudis Doubled Oil Production, Newsletter Says
Saudi Arabia’s crude oil production is believed to have doubled from the 20-year low of this summer and is expected to average 4 million barrels a day in October, the Middle East Economic Survey reported Monday.
That would be well above the September average of 2.7 million to 2.8 million barrels a day and the 2.1 million to 2.2 million barrels daily of August but still is below Saudi Arabia’s OPEC quota of 4.35 million barrels daily.
At one point during the summer, Saudi production was said to have fallen below 2 million barrels a day.
Much of the production increase is attributable to recently negotiated agreements to sell some Saudi oil at market-related prices that are well below the official prices of the Organization of Petroleum Exporting Countries.
The Middle East Economic Survey, an authoritative weekly newsletter that reports on the oil industry, estimated that 1.15 million barrels of Saudi oil are being sold daily under the new pricing arrangement.
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