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Economy

OPEC oil production cuts still up in the air

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Saudi Energy Minister Khalid Al-Falih said he saw an oversupplied oil market but that it’s “premature” to say what OPEC and its allies will agree in Vienna this week.

Wednesday 05, December 2018

(Bloomberg)--The comments come just days after Russia and Saudi Arabia agreed to extend their cooperation to balance the oil market into 2019.

In an interview with Bloomberg, Al-Falih said Moscow backs output curbs “in principle,” but that all the members of the so-called OPEC+ group, which includes Russia and Kazakhstan, needed to come together for a cut to go ahead.

The OPEC advisory committee recommended a cut of 1.3 million barrels a day last week, but since then the group got an unexpected hand from Canada’s 325,000 barrels a day reduction.

Last month the cartel held its production steady as record oil output from Saudi Arabia helped offset losses due to US sanctions on Iran.

TAGS : Khalid Al-Falih, OPEC+, OPEC advisory committee

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