ZCZC
BCN-23
WORLD-OIL-COMMODITIES-SAUDI-ENERGY-OPEC-LEAD
Saudi minister calls for 1 mln bpd global oil output cut
ABU DHABI, Nov 12, 2018 (BSS/AFP) – Oil producing countries should cut
output by one million barrels per day to re-balance the market, Saudi
Arabia’s energy minister said Monday, following a drop in crude prices.
“The technical analysis we reviewed yesterday shows that we need a
reduction approaching one million bpd to balance the market,” Khalid al-Falih
told an energy conference in Abu Dhabi.
Falih said Saudi Arabia, the world’s largest oil supplier, will cut its
production by 500,000 bpd as of next month to help stabilise the market.
Oil lost almost a fifth of its value over the past month due to oversupply
and signs of a softer-than-expected impact from US sanctions on Iranian crude
exports.
Major producers, including Russia and Saudi Arabia, on Sunday warned that
crude supply would outstrip demand next year at a joint OPEC non-OPEC
ministerial monitoring committee meeting in Abu Dhabi.
Falih on Monday said there had been a marked buildup in inventories,
adding that “the 25 producers will not allow this to continue” and that there
were “signals” they would do “whatever it takes to balance the market”.
OPEC and non-OPEC energy ministers are due to meet in early December in
Vienna to assess the global market.
BSS/AFP/HR/1440