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Fri 9 Sep 2016 10:06 AM

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Saudi oil output dips in August ahead of freeze talks

Saudi Arabia's crude oil production falls from record high in July, according to industry sources

Saudi oil output dips in August ahead of freeze talks
Saudi Arabias minister of energy Khalid Al-Falih. (Joe Klamar/AFP/Getty Images)

Saudi Arabia's crude oil production slipped in August to 10.63 million barrels per day (bpd), industry sources said on Thursday, as the OPEC heavyweight leads a drive to revive a global oil output freeze initiative.

Saudi Arabia pumped 10.67 million bpd of crude in July, the highest level in its history, on higher domestic demand in the summer and more exports.

Saudi Arabian energy minister will meet with his Algerian counterpart and OPEC's secretary-general in Paris on Friday as part of moves towards a global deal on stabilising crude output to support oil prices, an Algerian official and OPEC sources told Reuters on Thursday.

A source at the Organization of the Petroleum Exporting Countries confirmed the meeting as part of a push for an output deal, with producers battered by a glut-induced halving of oil prices over the past two years.

Algeria is hosting meetings of the International Energy Forum and OPEC on Sept. 26-28. OPEC and Russia are expected to revive talks for a global deal on production in Algeria. A similar initiative failed in April after Saudi Arabia insisted Iran join the pact.

Iran has been the main factor preventing an output deal between OPEC and non-OPEC Russia as Tehran has said it should be excluded from any such agreement before its production recovers from Western sanctions that ended in January.

Tehran signalled on Tuesday it was prepared to work with Saudi Arabia and Russia to prop up oil prices as it began to bargain with OPEC on possible exemptions from output limits.

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