Saudi to cut oil exports by 500,000 barrels per day in December

The slide also comes during signs of a softer-than-expected impact from US sanctions on Iran oil exports

An official from group member Kuwait said on Monday major oil exporters had over the weekend "discussed a proposal for some kind of cut in (crude) supply next year", although the official did not provide any detail.

Major oil producers said Sunday that crude supply next year would outstrip demand, calling for new strategies based on production adjustments.

"I think the consensus among all members is that we need to do whatever it takes to balance the markets and if that means trimming supply by a million bpd, we will do it", Khalid Al Falih told a ministerial panel at Adipec in Abu Dhabi.

Khalid al-Falih, Energy Minister of the world's top supplier Saudi Arabia, said the kingdom would cut its production by 500,000 barrels per day.

"Saudi Arabia has stepped in front of the oil market bears, proactively announcing they will reduce exports", said Stephen Innes, head of trading for Asia/Pacific at futures brokerage Oanda in Singapore. But even just signalling that producers could cut production by 1% can make a huge difference in energy markets and beyond.

The energy minister said: "There will need to be a reduction of supply from October levels approaching 1m barrels ..."

Opec and Russian Federation could revise their strategy, their oil ministers said at the conclusion of the Joint Ministerial Monitoring Committee meeting in Abu Dhabi on Sunday.

These figures suggest the main issue facing the USA energy sector is the lack of infrastructure - which is seen as a temporary obstacle before the ongoing rise in United States production and exports dampens global energy prices, while boosting oil prices in North Dakota itself.




US President Donald Trump put pressure on OPEC not to cut supply of oil to prop up the market. Sanctions did not pull [oil] out of the market as many had anticipated.

But Russia appears to need more convincing that it should be cutting production again.

Meeting to examine how to curb a sharp slide in oil prices, the producers said they "reviewed current oil supply and demand fundamentals and noted that 2019 prospects point to higher supply growth than global requirements". The administration had been counting on Saudi Arabia to assure oil supply to prevent a run-up in prices.

Brent crude dropped below $70 a barrel on Friday for the first time since April but it was trading above $71 a barrel on Monday. Russia, by contrast, is in a more comfortable position, and Energy Minister Alexander Novak showed no sign he was ready to act immediately.

"Equities and oil were pretty much falling in lock-step", said Josh Graves, senior market strategist at RJO Futures in Chicago. "They seem to be sitting squarely on the fence about pulling the barrels back".

As it cuts December shipments, the world's biggest crude exporter may struggle to convince others to follow.

"There are a lot of assumptions in their projections that may change", al-Falih said.

U.S. production has more than doubled over the last decade and surpassed 11 million barrels per day this summer.

Related news:

Hot News

isis-killer-beheading-video-story-top Mourinho blames fixtures while defending United's performance in Manchester derby defeat
Nov 13, 2018 - 14:41
Eighth-placed United are now 12 points behind leaders City and 12 ahead of Cardiff City who are in the relegation zone. Not only Man City - 10 points from Liverpool , a lot of points from the other ones as well.

isis-killer-beheading-video-story-top Deadliest in California history: At least 42 killed in wildfire
Nov 13, 2018 - 13:47
Officials said 228 people remain unaccounted for, even as many others who were reported missing turned up in area shelters. At least 29 people have been killed in that inferno and more than 6,000 structures destroyed.

isis-killer-beheading-video-story-top Sarri 'proud' after Chelsea break Premier League record
Nov 12, 2018 - 01:55
It didn't help that, despite scoring twice against Crystal Palace last weekend, Alvaro Morata once again struggled to impose himself.

isis-killer-beheading-video-story-top Florida Elections For Governor And U.S. Senate Heading For Recount
Nov 12, 2018 - 01:45
Gillum initially conceded the race on election night, but as the voting results narrowed, he asked that every vote be counted. The Florida Department of Law Enforcement said it will review allegations of criminal fraud but had no active investigations.

isis-killer-beheading-video-story-top President Trump Threatens to Pull Federal Funding Over Deadly California Wildfires
Nov 12, 2018 - 01:35
Studies have said wildfires often start due to extremely dry conditions, such as droughts that are spurred by climate change . Fire rescue resources included 4,050 personnel, 512 engines, 23 helicopters, 79 bulldozers and 33 water tenders.

isis-killer-beheading-video-story-top Warriors star Curry out at least a game with injury
Nov 12, 2018 - 01:35
On Thursday night, two of the top teams so far this young National Basketball Association season will clash at Oracle Arena. Golden State has won nine straight games, and it is again on pace to rack up close to 70 wins this season, probably.

isis-killer-beheading-video-story-top Hawking's thesis and wheelchair fetch $1 mil.
Nov 12, 2018 - 01:02
At the auction, a copy "signed" with Hawking's thumbprint raised $89,750 (£68,750), way above the $3,900 (£3,000) estimate. Stephen Hawking's doctoral thesis, written in 1965, has sold for nearly £585,000 in an online Christie's auction.

isis-killer-beheading-video-story-top Kevin Anderson rates his chances ahead of ATP Finals
Nov 12, 2018 - 00:33
Federer is aiming for a 100th career ATP title in London and going by the early judgements, his prime thorn will be Djokovic. This year, Federer won the Australian Open, Nadal won the French Open, while Djokovic won Wimbledon and the US Open.

isis-killer-beheading-video-story-top USA and China to Hold Security Talks Amid Trade Tensions
Nov 11, 2018 - 09:42
In other news this week, China announced that it is grooming 31 of its smartest teenagers to develop AI-powered weapons. In their talks, the Chinese and USA officials exchanged their views thoroughly on their own strategic intentions.

isis-killer-beheading-video-story-top F1 Brazilian Grand Prix | Lewis Hamilton snares pole position
Nov 11, 2018 - 08:58
Horner said it had been damaged in Mexico by a marshal spraying foam on the vehicle after he retired from the race. Alonso is retiring at the end of the season and it is with a whimper that his own career is fizzling out.

isis-killer-beheading-video-story-top US President Trump heads to Paris
Nov 11, 2018 - 08:48
As well as defense, Macron said he and Trump would discuss trade, Iran and the conflicts in Syria and Yemen. Kelly and Joe Dunford, the chairman of the Joint Chiefs of Staff, will go in Trump's place.

isis-killer-beheading-video-story-top Shirt maker didn't mean to offend with A-bomb image:The Asahi Shimbun
Nov 11, 2018 - 08:45
It also shows imagery of Koreans celebrating their liberation from Japan after the bombs were dropped. Both South Korea and Japan are particularly sensitive when it comes to the legacy of World War II.

isis-killer-beheading-video-story-top United States federal court judge halts construction on the Keystone XL Pipeline
Nov 10, 2018 - 01:41
The order came as a Canadian energy company prepared to assemble initial stages of the 1,200-mile long, cross-border project. He signed an executive order supporting its construction in March of a year ago .

isis-killer-beheading-video-story-top IS claims responsibility for Australia attack
Nov 10, 2018 - 01:36
One runs a trolley over from the other side of the street and pushes it at the attacker who is lunging at police. Twitter user Meegan May wrote: "Guy seems to have set his auto on fire, then attacked police with a knife".

isis-killer-beheading-video-story-top Predicted Liverpool XI vs. Fulham - Jordan Henderson set for return
Nov 10, 2018 - 01:26
Galatasaray are under Financial Fair Play watch and would not be able to sign the Liverpool man on a permanent move in January. Liverpool face Napoli at home and Paris St Germain away in the final two rounds and find themselves in a tricky situation.