Russia and Saudi Arabia to Continue Pumping Oil

02-Oct-2015

Russia and Saudi Arabia—the world’s two biggest oil producers—indicated Friday they weren’t pulling back from huge crude output levels that have helped send prices tumbling.

Russia said it produced oil in September at levels not seen since the fall of the Soviet Union, pumping an average of 10.74 million barrels a day, government data showed on Friday. Oil production increased 0.4% from August.

On the same day, one of the world’s most influential oil ministers—Saudi Arabia’s Ali al-Naimi—said his country would continue investing in oil and gas, saying his country remained committed to energy resource development, according to a Saudi Press Agency report. The world’s largest exporter has ramped up production above 10 million barrels a day for the past few months.

The output from those two countries adds to an already oversupplied global oil market, even with American output showing signs of weakness. Oil prices have fallen more than 50% in the past year as world supplies outpace demand by around 2 million barrels

on any given day. On Friday, they turned higher as weekly data showed a sharp drop in U.S. drilling activity. (by Georgi Kantchev & Summer Said, Wall Street Journal)

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