What is output of OPEC, non-cartel partners talks in Abu Dhabi?

What is output of OPEC, non-cartel partners talks in Abu Dhabi?

What is output of OPEC, non-cartel partners talks in Abu Dhabi?

Less than two months after Khalid al-Falih's assurances that Saudi Arabia will produce and export enough oil to keep prices steady, the Kingdom's Energy Minister has said that exports would be cut by as much as 500,000 bpd this month and next on a bid to prop up prices. From now on, US sanctions on Iran are unlikely to cut supply as much as expected.

Concern about oversupply has pushed oil prices down by roughly 20 percent since early October. "We need not overreact" to falling prices, Mazrouei said, adding that crude was a dynamic market.

Khalid al-Falih's comments follow a meeting in Abu Dhabi at the weekend, where the Organisation of Petroleum Exporting Countries (OPEC) and its allies started laying the groundwork to cut supply in 2019, reversing an nearly year-long expansion.

The next ministerial meeting will be held in Vienna on December 5-7. As a result, the price of crude oil in Midland, Texas, in the heart of the Permian Basin, has traded at a discount of as much as $18 per barrel to the price of WTI at the main Cushing, Oklahoma, hub.

The world's second and third crude producers - after they were overtaken by the U.S. thanks to shale oil - Russian Federation and Saudi Arabia are the core of an alliance of producer nations that succeeded in solidifying oil prices after the 2014 crash. "The committee reviewed current oil supply and demand fundamentals and noted that 2019 prospects point to higher supply growth than global requirements", it said in a statement. With oil wallowing in a bear market, OPEC and its allies gathered in Abu Dhabi on Sunday to weigh production cuts.

"What is more important is the production of shale oil from America", Tun Dr Mahathir Mohamad told CNBC in an interview in Singapore yesterday. The decline in prices continued last week after the USA said it would let eight countries keep importing Iranian oil.

Oil's slide accelerated on Tuesday, with USA futures suffering their steepest one-day loss in more than three years due to ongoing worries about weakening global demand and oversupply.

Producers implemented large cuts starting at the beginning of 2017 but they eased output cuts as of June this year.

The kingdom's energy minister, speaking after a meeting of Opec at the weekend, said the cartel believed that production would need to fall by almost 1m barrels per day (bpd) on October levels.

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Falih also said Saudi Arabia is not preparing for a breakup of OPEC and believes the group will long remain the global central bank for oil.

Bordoff said, however, that producers might not be ready to cut output yet because of uncertainty over the effect that new USA sanctions could have on Iranian production.

Trump on Monday said he hoped OPEC will not cut production, making it clear he wants oil prices to fall.

When asked about the possibility of an output cut, he insisted it was "premature to talk about a specific action".

He said emerging concerns about weak global demand, rising USA production, and speculators rapidly bailing out of long positions were primary factors for the drop.

That led to a sharp price drop on Monday, which continued into Tuesday.

He said market sentiment had shifted from fears of shortages to worries about oversupply.

With oil prices having dived since the beginning of October, Russia and Saudi Arabia - now the No. 2 and No. 3 oil producers in the world, behind the USA - are feeling pressure to reduce their production in order to stabilize the market.

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