Saudi Aramco plans to issue global bond

Saudi Arabia announces rise in oil, gas reserves

Saudi Arabia announces rise in oil, gas reserves

He also announced a further 100,000 bpd cut in February.

"China trade talks and firm commitments made by Saudi Arabia to cut oil production", he said.

Further easing concerns of global oversupply, U.S. commercial crude oil inventories decreased by 1.7 million barrels from the week ending January 4, the U.S. Energy Information Administration reported on Wednesday, which marked the biggest fall since November 2018.

Al-Falih played down chatter in the market that Aramco would fund the entire US$70 billion Sabic deal with the bond offering.

"We will work with our advisers and find the right time to go to market and part of that would be a prospectus that would have appropriate financial statements and disclosures", Mr Al-Falih said. "We have seen peaks and drops in prices completely unjustified by the fundamentals".

After a turbulent final quarter in 2018, oil prices have been supported in the first week of 2019 by cuts from OPEC producers and Russian Federation. That figure is "more than sufficient to bring balance to the market", said Falih, adding that the production cut would trim excess supply from the market.

He mentioned an announcement "Wednesday by Saudi Arabia that it will cut its exports in January by 10 percent compared with November".

Top oil exporter Saudi Arabia announced a slight rise in its crude oil reserves on Wednesday after they were independently audited, providing more detail about the size of deposits shrouded in secrecy for decades.

Natural gas reserves also grew from 302.3 trillion cubic feet (8.56 trillion cubic metres) to 324.4 trillion cubic feet (9.2 trillion cubic metres), the ministry said.

The audit was carried out by Dallas-based consultancy DeGolyer and MacNaughton.

Saudi state owned oil giant Aramco is interested in setting up an oil refinery at Gwadar.

Gas reserves totalled 325.1 trillion cubic feet (Tcf), an increase of 17.2 Tcf over the previous estimate.

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