OPEC members expected to agree oil production cut

Oil prices skid amid global stock market slump, swelling US supply

Iran, Saudi's regional rival and fellow OPEC member, has resisted any notion of cutting its output as its crude exports are being pinched already by USA sanctions.

The US is not in a position to tell OPEC or Saudi Arabia what to do, Saudi Energy Minister Khalid al-Falih told journalists when asked about Donald Trump's reaction to curbing production of crude by the kingdom or the oil cartel.

The Organisation of the Petroleum Exporting Countries (OPEC) is meeting at its headquarters in Vienna, Austria, on Thursday to decide its production policy.

The OPEC countries will now discuss the meeting with Russian Federation, which is not part of OPEC but has been coordinating its output levels to support the market.

The Saudi minister said that it was important that all non-OPEC producers participate in any agreement to reduce production and that all options were on the table to reach an agreement.

US oil prices were little changed after the news.

In the Middle East, Saudi Arabia produced a record 11.3 million barrels per day (bpd) in November, adding to the swelling glut.

"We continue to re-tool our export infrastructure along the Gulf Coast to expand capacity, and you continue to see strong demand globally for crude oil". However, Moscow has not yet specified how much it will cut production during the fresh round of supply caps that is now under consideration. In preparatory meetings ahead of this week's summit, delegates had said a cut of as much as 1.3 million barrels a day next year is needed as demand growth slows and USA shale production surges.

One issue that might complicate relations between the USA and OPEC is the murder of Saudi Arabian journalist Jamal Khashoggi by people linked to the government in Riyadh. The cartel and its allies are meeting in Vienna this week, trying to make a tough choice to cut output and support prices, risking the loss of more market share to the U.S.

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.

Unless there is a bullish clarification from the Saudi oil minister later today, prices are likely to remain under pressure.

Ann-Louise Hittle, vice president, macro oils, at consultancy Wood Mackenzie said: "We expect the group to agree to a production cut lasting until at least the first half of 2019".

"They should know that OPEC is not part of their Secretary of Energy", said its minister Bijan Namdar Zanganeh. "OPEC and Russian Federation will be very careful about voluntary "blood letting".

According to Reuters, five unnamed delegates said ahead of the meeting that the group's preferred level of supply cuts would effectively be conditional on Moscow's contribution.

The United States became a net oil exporter last week for the first time in 75 years, and even if it is likely to be for just one week, the achievement highlights the increasing global influence of the soaring USA crude oil production.

OPEC members will also have to contend with Iran.

Related news:

Hot News

isis-killer-beheading-video-story-top Qualcomm Snapdragon 855 with 5G connectivity, 3D Sonic Sensor unveiled
Dec 06, 2018 - 00:43
Apple is reportedly not going to offer a 5G-ready iPhone until 2020, and so Android devices may have a competitive edge. With its new 5G modem , the 855 SoC is most likely to power the upcoming 5G phones early next year.

isis-killer-beheading-video-story-top The US and China "took a break" a trade war
Dec 06, 2018 - 00:30
Had a deal not been struck, tariffs on US$200bn worth of Chinese goods would have risen from 10% to 25% at the start of 2019. The agreement keeps those tariffs at 10 percent for at least the next 90 days while the countries negotiate further.

isis-killer-beheading-video-story-top Kareem Hunt situation a bad look for NFL
Dec 05, 2018 - 00:42
He said the episode started with a disagreement, escalated into an argument and then physical violence. "The video shows it". League officials told ESPN the NFL reached out to the woman and her friend on multiple occasions, but they did not respond.

isis-killer-beheading-video-story-top Manchester City wasn't sparked by my 'ridiculous' half-time speech - Pep Guardiola
Dec 05, 2018 - 00:42
Bournemouth suffered its sixth loss of the season and provisionally holds the ninth spot with 20 points. Jamie Vardy's 12th-minute penalty, after the striker himself was brought down, gave Leicester the lead.

isis-killer-beheading-video-story-top 'Difficult and demanding' Meghan Markle made her assistant cry
Dec 05, 2018 - 00:21
Kensington Palace has issued a rare statement about a recent alleged argument between Meghan Markle and Kate Middleton . Markle smiled and gave a brief wave in her first public appearance with the queen .

isis-killer-beheading-video-story-top Jurgen Klopp charged by FA over Merseyside derby celebration
Dec 05, 2018 - 00:13
I couldn't avoid it obviously, but that's what the rules are for, and if you break rules you have to be fined for it", he said. All seem to get along and we have some quality players who are capable of competing and getting results against the best.

isis-killer-beheading-video-story-top Israel police recommend indicting Netanyahu over bribery
Dec 03, 2018 - 09:51
Israeli police have recommended indicting Prime Minister Benjamin Netanyahu on bribery charges involving Israel 's telecom giant. But at the minimum, a trial would put great pressure on Netanyahu, who has been in office for almost a decade, to step aside.

isis-killer-beheading-video-story-top British couple to be reunited with engagement ring lost in Times Square
Dec 03, 2018 - 09:44
A man was proposing to his girlfriend when he dropped the ring and it fell about 8 feet (2.4 meters) down a utility grate. After finding their engagement ring, the police had been searching for the couple over the weekend.

isis-killer-beheading-video-story-top Israel carries out airstrikes in Syria
Dec 01, 2018 - 01:31
In 2017, the BBC, quoting a Western intelligence source, reported the Iranian military had a compound outside Al Kisweh. It is not yet clear whether the S-300s were among the air defense systems used in the Thursday night counterattacks.

isis-killer-beheading-video-story-top NASA chief says Elon Musk won't be smoking joints publicly again
Dec 01, 2018 - 01:06
SpaceX has been a hugely valuable partner for NASA, but launching unmanned cargo ships into space is one thing. NASA has big plans to go back to the moon, and it wants private companies to help them get there.

isis-killer-beheading-video-story-top Facebook was warned of alleged Russian meddling back in 2014
Nov 30, 2018 - 01:18
Facebook said comments were taken out of context and "no evidence of specific Russian activity" had been found at that time. Collins also said that he is urging Facebook to stop blocking the documents from being unsealed in a California court.

isis-killer-beheading-video-story-top Neymar and Alves perform synchronised dance to celebrate win over Liverpool
Nov 30, 2018 - 01:07
PSG will be eliminated from the Champions League if it loses to Liverpool and Napoli beats Red Star in the other Group C game. Klopp also felt one of the game's most influential players, Marco Verratti, deserved a red card for a challenge on Gomez.

isis-killer-beheading-video-story-top Trump Lights Up Mueller Again After Special Counsel Accuses Manafort of Lying
Nov 28, 2018 - 01:03
He was found guilty on eight counts , including tax fraud, money laundering and lying to the government. District Judge Amy Berman Jackson of the District should set sentencing immediately.

isis-killer-beheading-video-story-top May challenges MPs to back Brexit deal
Nov 28, 2018 - 01:02
May, who ducked televised debates during the 2017 snap general election, challenged Corbyn to a TV contest round about December 9. And that wouldn't be a good thing.

isis-killer-beheading-video-story-top Browns’ Baker Mayfield denies Hue Jackson of a hug
Nov 28, 2018 - 01:01
It's bad enough he was sacked as head coach of the Cleveland Browns earlier this season, but Sunday put the icing on the cake. Former NFL player Damien Woody criticized Mayfield on ESPN's First Take , saying the rookie needed to "grow up".