Riyadh: Energy Minister Khalid Al-Falih called on Monday to reduce global oil production to 1 million barrels per day "to achieve a balance in the market," the statement comes on the sidelines of a conference on energy held in Abu Dhabi.
Saudi Energy Minister Khalid al-Falih said on Monday that a technical analysis revealed the need to reduce global oil production by one million barrels per day.
"The technical analysis we reviewed yesterday reveals that we need a reduction of one million barrels per day to achieve a balance in the market," he said. He pointed to the accumulation in stocks, explaining that "the 25 (producers) will not allow it to continue."
The comments come as part of a meeting in Abu Dhabi for OPEC member countries and other non-cartel oil countries.
"The indicators we sent yesterday mean that we will do what is necessary to achieve market equilibrium," he said.
Prior to the Abu Dhabi meeting, Saudi Arabia announced a reduction in its daily production of oil by 500,000 barrels from December, citing a sudden drop in oil prices.
The price of a barrel of Brent crude on Friday to less than seventy dollars for the first time since April, while the price of a barrel of light oil to less than sixty dollars, marking a decline for the ninth month in a row.
Despite signs of slowing demand, Saudi Arabia, Russia, Kuwait and Iraq have increased production of crude, as well as the United States with its oil production.
The recent drop in oil prices is mainly due to lower demand in China, the world's largest importer of black gold, as growth slows, said Kyleen Birch, analyst at Economist Intelligence Unit.
"The technical analysis we reviewed yesterday reveals that we need a reduction of one million barrels per day to achieve a balance in the market," he said. He pointed to the accumulation in stocks, explaining that "the 25 (producers) will not allow it to continue."
The comments come as part of a meeting in Abu Dhabi for OPEC member countries and other non-cartel oil countries.
"The indicators we sent yesterday mean that we will do what is necessary to achieve market equilibrium," he said.
Prior to the Abu Dhabi meeting, Saudi Arabia announced a reduction in its daily production of oil by 500,000 barrels from December, citing a sudden drop in oil prices.
The price of a barrel of Brent crude on Friday to less than seventy dollars for the first time since April, while the price of a barrel of light oil to less than sixty dollars, marking a decline for the ninth month in a row.
Despite signs of slowing demand, Saudi Arabia, Russia, Kuwait and Iraq have increased production of crude, as well as the United States with its oil production.
The recent drop in oil prices is mainly due to lower demand in China, the world's largest importer of black gold, as growth slows, said Kyleen Birch, analyst at Economist Intelligence Unit.