Dubai/London: Opec and its partners are discussing a proposal to cut oil output by up to 1.4 million barrels per day (bpd) for 2019, three sources familiar with the issue said, to avert an oversupply that would weaken prices.
Worried by a drop in oil prices and rising supplies, the Organisation of the Petroleum Exporting Countries (Opec) is talking again of reducing production just months after increasing it. The group meets on December 6 to set policy for 2019.
A supply cut of up to 1.4 million bpd was one of the options discussed by energy ministers from Saudi Arabia, non-Opec countries like Russia and other nations at a meeting in Abu Dhabi on Sunday, the sources said.
“I believe a cut of 1.4 million bpd is more reasonable than above it or below it,” one of the sources, who declined to be identified by name as the talks are confidential, said.
Opec member Iran, as well as Russia, would need to be brought on board for the new plan, the sources added. One source said Iran does not want to have a production target in a new agreement as it is facing lower exports due to US sanctions.
Together with Russia and other non-Opec producers, Opec had agreed in June to boost supply after pressure from United States President Donald Trump to lower crude oil prices, partially unwinding output cuts that began in January 2017.
