Saudi Arabia endorses moderate trims to oil supply at Opec meeting

Saudi Arabia endorses moderate trims to oil supply at Opec meeting

Saudi Arabia endorses moderate trims to oil supply at Opec meeting

At a December 2016 meeting, OPEC members had agreed to a production cut to battle a supply glut that saw oil prices drop to $25 per barrel.

Members of the Organization of the Petroleum Exporting Countries (OPEC), as well as the cartel's allies, are meeting at OPEC's headquarters in Vienna on Thursday.

He tells reporters the nations are "after a stable market and also a fair price for the producers as well as the consumers".

A cut from between 1 million to 1.4 million barrels per day is being expected by oil market watchers ahead of the meeting in Vienna, Austria, today.

Possible output cuts by OPEC and its allies ranged from 0.5-1.5 million bpd, and 1 million bpd was acceptable, the Saudi energy minister said Thursday.

"Some countries will struggle because their economies are very constrained" and Nigeria itself could only manage a small cut, Nigeria's oil minister, Emmanuel Kachikwu, said in a Bloomberg television interview on Thursday morning.

Oil prices were pressured by a weekly report from the American Petroleum Institute (API) that said USA crude inventories rose by 5.4 million barrels in the week to November 30, to 448 million barrels, in a sign that United States oil markets are in a growing glut.

The group wants to stabilise or increase crude oil prices, which turned sharply downwards in early October.

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Al-Falih said a decision would take all day Friday.

"Hopefully, OPEC will be keeping oil flows as is, not restricted".

WTI Crude prices at $50 are scaring the USA shale patch, according to Price Futures Group analyst Phil Flynn. But just like the USA is pursuing its own interests, one can not expect Saudi to do anything different - even despite the controversy surrounding the killing of journalist Jamal Khashoggi in Istanbul at the Saudi embassy. It's nearly certain that Russian Federation will give the green light to cuts but it looks like it'll only be the bare minimum as to what markets are expecting.

"We don't need permission from anyone to cut", he said.

Novak, speaking from Saint Petersburg on Thursday, said that his country was watching closely how the situation was developing. Trump has backed Saudi Crown Prince Mohammed bin Salman despite calls from many USA politicians to impose stiff sanctions on Riyadh. A cut of 1 million barrels would be the minimum to support the market, and anything less could see the price of oil fall another $10 a barrel, according to Neil Wilson, chief market analyst at Markets.com.

"The stakes are high now for OPEC". The reason the United States is pressuring OPEC in general to maintain high levels of production is the United States generally would like a lower price of oil.

OPEC's reliance on non-members like Russian Federation highlights the cartel's waning influence in oil markets, which it had dominated for decades.

Russia's big oil companies are close to the government and the dominant firm in Saudi Arabia - Saudi Aramco - is state-owned. While it said it was purely a practical decision because it mainly produces natural gas and little oil, the move was viewed as a symbolic snub to the Saudi-dominated organization.

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