Saudi Arabia has destabilized the crude market while increasing its oil output by 1.5 million barrels a day, said Russia’s Energy Minister Aleksandr Novak.

"This year Saudi Arabia has ramped up production by 1.5 million barrels per day, which in fact destabilized the situation on the market," Novak told Rossiya 24 TV channel.

According to him, the balance of oil supply and demand could be achieved in 2016. Iran’s return to the global energy market could also affect oil prices, Novak added.

Earlier this month, OPEC decided not to cut output, it left ‘de facto’ production unchanged at 31.5 million barrels per day (bpd). The previous official output ceiling was 30 million bpd, but OPEC was already pumping more than that.


The cartel’s output hit a three-year high in July at 31.5 million barrels per day (bpd) following OPEC kingpin Saudi Arabia’s output increase. The kingdom then refuted media reports it was pumping more to compensate for lower prices.

Despite the perpetual appeals to reduce output and support oil prices, OPEC has been refusing to do so as the organization is trying to maintain its market share. Saudi Arabia has been the main opposition to production cuts.

The group of 12 OPEC countries accounts for about 40 percent of the world’s crude production.

https://www.rt.com/business/327272-saudi-oil-market-destabilization/

Putin have said it before, Those behind fall in oil price will also suffer from the effect.

Saudi Arabia just increase their petrol price by a whopping 40%!
http://www.aljazeera.com/news/2015/12/saudi-arabia-hikes-petrol-prices-40-pump-151228154350415.html

They also plan to slash subsidies for electricity, water, diesel and kerosene over the next five years and privatise a range of sectors. Soon this may fuel an uprising in their country and they and their Royal gay àss can kiss goodbye to their stûpid monarchy.

Idrismusty97:
Putin have said it before, Those behind fall in oil price will also suffer from the effect.

Saudi Arabia just increase their petrol price by a whopping 40%!
http://www.aljazeera.com/news/2015/12/saudi-arabia-hikes-petrol-prices-40-pump-151228154350415.html

Why would they do that? When they have oil in abundance and its even cheap. Na wah o.

braine:


Why would they do that? When they have oil in abundance and its even cheap. Na wah o.

Having oil in abundance doesnt mean you wont get hurt by dwindling prices.

Their wicked gamble is going to backfire most definitely, no doubt about that. Even the saudi royals all know this as a fact.

The brain dead,terror funding psychopaths are finding it hard to fund the budget and have already depleted the foreign reserves and is willing to get loans from the blood sucking, western vampire, IMF.
It is on a 9 month bombing campaign of Yemen and even has mercenaries doing the dirty job over there and doesn't have money for essential amenities back home.

brain dead Putin and his idiot energy minister should know that if America's shale oil producers enters the market the alleged destabilization would be far worse than they thought the mumu minster even said that Iran will add 1m barrels I don't see how that would stabilize the markets except lead to more oil glut in an already over supplied market. Oil prices were high because speculators assumed there will be a war in the ME thereby disrupting supply. Saudi's actions seems more to preserve OPEC market share and keeping the US from entering global oil market.

Sorrry putin we know you love your huge ego which cares less for the ordinary Russians suffering its policies but reality careless about your bloated ego.

braine:


Why would they do that? When they have oil in abundance and its even cheap. Na wah o.

Cutting govt. Expenditure despite having over 600 billion dollars in reserves. They are even cutting down on other subsidies to reduce their expenditure in order to reduce their budget deficits which could reach 67 billion dollars.