14.12.201816:55 Forex Analysis & Reviews: Saudi Arabia will significantly reduce the supply of oil to the United States

On Friday, December 14, it became known that in the near future, the Saudi authorities will sharply reduce oil supplies to the United States. The reason for this is the surplus reserves of black gold, which rose by 50 million barrels since September of this year.

Oil prices showed strong growth on Thursday. Experts find two explanations for this: first, the market regains the reduction of black gold reserves in the United States, and secondly, it is also preparing to reduce raw materials due to Saudi Arabia's plans in the coming weeks to drastically reduce US oil supply stocks, which since September, it rose by 50 million barrels.

According to Bloomberg, Saudi Aramco, the largest oil company in the kingdom, warned the US refineries of a large-scale supply decline in January 2019. It is expected that their volume will be reduced to 0.6 million barrels per day, which is 40% lower than the average value for the last three months of 2018.

Experts believe that this measure on the part of Saudi Arabia will demonstrate the seriousness of the kingdom's intentions after the adoption of the new OPEC + agreement. The dynamics of oil and petroleum products in the United States has a significant impact on the world market, so the actions of the Saudis will not pass without a trace. Analysts find it difficult to answer whether these actions will have a positive or negative impact on the global black gold market.

According to Bloomberg in January 2019, Saudi oil exports could reach 7 million barrels per day, which is less than in the period of November-December 2018. According to Khalid Al-Falih, Minister of Energy of Saudi Arabia, the authorities of the kingdom intend to reduce production by 10.2 million barrels per day from the November level of 11.1 million barrels. Experts point out that current news has not led to an increase in black gold prices, which have not yet recovered from the recent collapse.