Tag Archives: Oil

Oil oversupply – major producers plan to negotiate output cuts in 2019

The monitoring committee of the OPEC and non-opec production cut agreement met in ABU dhabi, the united Arab emirates, Thursday to maintain crude prices and is expected to hold comprehensive discussions on production cuts in 2019 at the regular OPEC meeting in early December. It is understood that there is a view in the market that supply and demand will ease due to trends such as rising us oil inventories. New York crude futures traded above $76 a barrel in early October, before the decline intensified. After entering November, it briefly broke below $60. Major producers of temporary output may cut back again to avoid a plunge in crude prices. In a statement issued after the meeting, the oversight committee said it expected supply to rise above global demand in 2019. To balance supply and demand, the statement pointed to the possibility of a “new strategy”. “There may be no increase in capacity,” uae energy and industry minister mazzirui said at a press conference after the meeting. Saudi energy, industrial and mineral resources minister ali al-falih said the kingdom would cut output by more than 500,000 BPD in December from November. On the other hand, Russian energy minister novak said the decision to implement production cuts in 2019 “takes time.” To keep crude prices from rising, Saudi Arabia, Russia and others decided in June to ease the deal and increase supply. The yield target was met by 104 percent in October.

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