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.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

See an opportunity to trade?

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

Spread bet and 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

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets 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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.