Saudi Arabia consistently reduces the oil reserves amid rising domestic demand, thus attempting to maintain the level of exports. According to The Wall Street Journal, citing data from the Joint Organisations Data Initiative (JODI, the study group on the oil market from Riyadh).
According to JODI, in may 2016 the oil reserves in Saudi Arabia fell to the lowest level since August 2014. Since October last year, the reserves fell by 12 percent, to 289 million barrels, demonstrating the longest decline in the past 15 years.
The Kingdom is trying to maintain the delicate balance in a difficult market time, according to respondents edition analysts. At the same time Saudi Arabia seeks to bolster exports to combat competitors — Iran, Russia and the United States.
According to JODI, in may, Riyadh increased its exports by five percent to nearly 7.3 million barrels per day. “If Saudi Arabia do not spend their reserves, then it would have to cut exports, while Iran builds up its foreign supply,” said Oliver Jakob, analyst at Petromatrix.
July 20 at 10:40 GMT Brent on London’s ICE futures exchange was trading around the level against 46.63 per barrel. It fell by 0.06 percent compared with the close of the previous session.
July 18, Bloomberg reported that the Arab petroleum investment Corporation and the national shipping Corporation of Saudi Arabia Bahri will form the investment Fund of $ 1.5 billion to increase oil fleet of the Kingdom.
On 12 July the Minister of energy of the Kingdom Khaled al-Faleh said that to achieve equilibrium in the energy market the price of oil should be above $ 50 per barrel.
A day earlier it was reported that OPEC countries, including Saudi Arabia increased its oil production to its highest level since 2008. The cartel produces of 32.73 million barrels a day.
