Oil demand slumps Saudi Arabia to cut output

Saudi Arabia has cut its oil production to the lowest level in a year. Two major factors affected the Saudi oil production: Due to the economic downturn, oil demand was weak; in addition, the opening of shale oil and gas made the US crude oil production surge.

Data released on the eve of the OPEC Vienna Conference on Wednesday showed that Saudi Arabia’s oil production in November was reduced by 230,000 barrels to 9.49 million barrels per day, which was the lowest level in a year and fell sharply from the 30-year high of 10.1 million barrels in June.

The Saudi production cut also caused OPEC’s total oil production in November to drop to 30.78 million barrels per day, which is almost a one-year low.