Latest oil news: OPEC extra meeting in the cards if output cuts don’t balance market

OPEC and oil producers say they’re ready to hold an extra meeting if output cut does not balance the market next year.

OPEC Source: Bloomberg

OPEC and oil producers have said on Sunday, they’re ready to hold an extra meeting if the current cut in oil output by 1.2 million barrels per day does not balance the market next year.

The decision was announced at an OPEC gathering in Kuwait on Sunday, during a news conference. OPEC member Suhail al Mazrouei said:

“What if the 1.2 million barrels of cuts are not enough? I am telling you that if it is not, we will meet and see what is enough and we will do it,” Mr Mazrouei said.

He stated that if they needed to extend the output agreement that was signed in early December, the producers will do what’s needed to balance out the markets.

“If we are required to extend for (another) six months, we will do it.. I can assure you an extension will not be a problem.” Mr Mazrouei said.

It comes after OPEC and Russia-led allies agreed to cut oil production by more than market expectations.

Oil Price

Oil prices fell to their lowest level since Q3 2017, with analysts predicting the fall was due to the global oversupply, keeping buyers cautious ahead of the holiday season.

Saudi Arabia's OPEC governor, Adeeb Al-Aama said Oil market supply has fallen 37 million barrels in January 2017, as the oil production cuts began.

The OPEC governor also said that the world’s top oil exporter’s production in January is lower than its output target.

Oil - US Crude has fallen 0.51% on Monday at market open at $45.59 per barrel.

Oil - Brent Crude fell 0.52% on Monday at market open selling at $53.85 per barrel.


IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Please see important Research Disclaimer.

See an opportunity to trade?

Go long or short on more than 16,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.