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.


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