OPEC, allies to mull deeper oil cut amid worries over demand growth


OPEC, allies to mull deeper oil cut amid worries over demand growth

OPEC and its allies will consider whether to deepen cuts to crude supply when they next meet in December due to worries about weak demand growth in 2020, sources from the oil-producing club said.

Saudi Arabia, OPEC’s de facto leader, wants to focus first on boosting adherence to the group’s production-reduction pact with Russia and other non-members, an alliance known as OPEC+, before committing to more cuts, the sources said. OPEC members Iraq and Nigeria are among the countries that have failed to comply properly with pledged output reductions.

Saudi Arabia and other Gulf producers in the Organization of the Petroleum Exporting Countries have been delivering more than their share of promised cuts to stabilize the market and prevent prices from falling.

Riyadh has been pumping some 300,000 barrels per day (bpd) below its output target, taking the lion’s share of the curbs. Read More

Leave a Reply

Your email address will not be published.