We know that when the relationship between supply and demand in the market is unbalanced, prices will fluctuate, and prices will fall when supply exceeds demand. Therefore, Saudi Aramco hopes to negotiate with Russia to stabilize crude oil prices by reducing production. However, the Russian side said that the price of crude oil is still within the acceptable range and they do not want to cut production. In addition, the early cooperation between Russia and the Organization of Petroleum Exporting Countries will soon expire, when Russia will increase the supply of crude oil.
Because the agreement between Saudi Aramco and Russia failed, Saudi Aramco wants to restore one of its own crude oil supplies and then reduce the price of crude oil, so as to maintain the stability of crude oil sales revenue through small profits but quick turnover. At present, Saudi Aramco has reduced the price of crude oil. As a result, the price of crude oil futures also dropped to about $365,438 +0. Previously, Saudi Aramco's highest continuous daily output was 6.5438+0.2 million barrels, but Saudi Arabia is expected to increase its daily output to 6.5438+0.3 million barrels, and tentatively set the daily supply of crude oil to 6.5438+0.23 million barrels from April 654.38+0, and the strategy of small profits but quick turnover was officially launched.
In fact, Saudi Aramco dares to choose small profits but quick turnover because the cost of extracting crude oil is relatively low. They can bear low prices and sell more to stabilize their operating income, but as far as the current situation is concerned, they can't negotiate with Russia to maintain stable crude oil sales income by reducing production and raising prices. Since the other side wants to increase production, Saudi Aramco also feels that it is impossible to reduce production solely by them.