OPEC to cut output to fix falling oil prices

OPEC to cut output to fix falling oil prices

OPEC to cut output to fix falling oil prices

The Organisation of the Petroleum Exporting Countries (OPEC) is expected to agree to cut oil production at a meeting aimed at supporting oil prices.

"If Mr. Hook has come to Vienna to apply for United States membership in OPEC, and this is the reason why he meets OPEC members, the request can be reviewed", Zangeneh told Shana news outlet.

Zangeneh said the estimated surplus now on the market amounted to 1.3 to 2.4 million barrels per day.

Rebuffing Wednesday tweets by U.S. President Donald Trump urging OPEC countries to maintain high oil production but lower prices, Novak said the group's members make decisions based on the market situation, the balance between oil supply and demand, and available reserves.

Saudi energy minister Khalid al-Falih, OPEC's de-facto leader, has in recent weeks travelled to Libya and Nigeria to press them on the exemptions, though no public commitments have been announced.

Saudi Arabia is hoping Russian Federation, one of OPEC's most important allies, cuts down its production by about 250,000 barrels per day, but Russian Federation wants to limit its cut to half that amount.

You can't buy Iranian oil and you can't facilitate the acquisition of oil or US currency for Iranians.

Al-Falih suggested Saudi was leaning toward a cut, saying "I think a million will be adequate personally" with each country cutting an equal percentage.

While U.S. President Donald Trump continues to call on OPEC to keep oil prices low, because "The World does not want to see, or need, higher oil prices!", one corner of the world may need WTI prices higher than the current low $50s to keep pumping crude at the record pace it has been doing so far this year-the U.S. shale patch. This comes as US crude oil is now trading at $53 a barrel, which is down from a four-year high.

Sources said the group had agreed on the need to curb production but had yet to reach an agreement on the exact figure.

WTI Crude prices at $50 are scaring the US shale patch, according to Price Futures Group analyst Phil Flynn. Nonetheless, Saudi Arabia is in a delicate position, in the wake of the murder of opposition journalist Jamal Khashoggi. Another factor is surging United States production, which has reached record highs of 11.5mb/d, or more than a 10th of global output, a figure that is expected to rise further in 2019. Saudi Oil Minister said that PM Modi in a private meeting had pitched for cheaper fuel prices which strongly shows that he does care about the Indian consumers.

"If everybody is not willing to join and contribute equally, we will wait until they are", he said. "OPEC and Russian Federation will be very careful about voluntary "blood letting".

However, OPEC's third-biggest producer Iran wants to be exempted from any such measures. He said the OPEC countries were still discussing the distribution of the cuts between them. 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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