Increased Oil Production Could Not Alleviate Natural Gas Crisis Saudi Arabia state that as United States exerted pressure
In the face of the increasingly urgent demand for production Increased Oil Production in market, Saudi Arabia, a major oil exporting country in the Organization of Petroleum Exporting Countries (OPEC)
Said that in fact, “OPEC+” can do too little in the energy market. Even if “OPEC+” Increased Oil Production, for the current international market However, the “coking” effect of gas prices is not great.
Natural gas and coal prices have soared to record highs in recent weeks due to fuel shortages in most parts of Europe and Asia.
In other cases where fuel prices are high, some power suppliers choose to switch power generation raw materials from natural gas to oil, so international oil prices have also risen.
However, in contrast, the increase in oil prices is much lower than that of natural gas and coal. The market believes that “OPEC+” has handled well in oil price control, and also highlights the utility of “OPEC+” production increase.
In addition, there are also voices in the market that if OPEC+ continues to increase oil production, it can curb the soaring oil price and may even alleviate the natural gas crisis. So far, the United States has called for “OPEC+” to increase oil production twice, and even Japan has come forward to urge oil suppliers to act quickly.
However, OPEC+ still maintained its original production, Increased Oil Production – 40 thousand barrels per day – and rejected the request for an additional production increase in the United States, because the organization believes that if the oil supply is blindly increased to curb price increases now, there will be a serious commodity surplus in the future.
Saudi Arabia explained that the main reason for the natural gas crisis is not oil supply. Even if they supply it in tons, do so many people really need oil? It is reported that in winter, the daily demand for oil in the countries of the northern hemisphere has increased by only 50 to 60 thousand barrels, which only accounts for 0.5% of global consumption.
It stressed that at present, there are many gas-fired power generation machines that cannot be easily converted into fuel power generation. Moreover, the carbon emissions of oil are much higher than that of natural gas. Under the limits of carbon emissions, the oil market is not as good as expected.
Russian President Putin said on Thursday that OPEC’s oil production increased slightly higher than the agreement, but not all countries could significantly increase oil production.
Putin said, “Not all oil-producing countries can quickly increase crude oil production.”
It is worth mentioning that November 4 this year is a new round of “OPEC+” meetings. At that time, if oil prices are still high, then “OPEC+” may be under pressure from more consumers to increase production.