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.

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