Saudi Arabia expressed the need for oil producers to cut 1 million barrels a day from October levels and announced fewer shipments from next month, as OPEC and its allies began laying the groundwork to reduce oil supply in 2019, reversing an nearly year-long expansion.
Kristian Rouz - The shale oil boom in North Dakota's Bakken oil field continues to set new records, rendering United States crude prices lower, which, in the face of increasing USA energy exports, is poised to weigh on worldwide oil prices as well.
Although Opec heavy weight Saudi Arabia could not convince other members of the cartel on a collective production cut, the kingdom said on Sunday it will go ahead with a unilateral output cut next month.
He was speaking in Abu Dhabi where an oil market monitoring committee was held on Sunday, attended by top exporters Saudi Arabia and Russian Federation.
Major oil producers said on Sunday that crude supply next year would outstrip demand and signalled they may agree to production cuts when OPEC meets next month in Vienna.
"One thing that is abundantly clear, OPEC is in for a shale shocker as US crude production increased to a record 11.6 million barrels per day and will cross the 12 million threshold next year", said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.
"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 in Oanda in Singapore. That confounded a market that was anticipating a stricter enforcement. "Oil markets are significantly oversold in our view, and we remain convinced that both Brent and [US benchmark] WTI will rebound from their current bearish market mode", said analysts at MUFG bank.
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Outgoing US Ambassador to the United Nations Nikki Haley said Friday that the US "have given a lot of carrots up until now. Russian Federation and China have both resumed trade with North Korea after noting its improved relationship with the US.
Brent crude dropped below Dollars 70 a barrel on Friday for the first time since April while the New York's West Texas Intermediate (WTI) sank below USD 60 a barrel, a nine-month low. "We need to wait some time, to see how the market develops", he told reporters.
That would largely wipe out the 1m bpd increase the group agreed in June in a bid to rein in the price of oil.
"We want to enter 2019 with a minimum amount of stocks", Falih said.
Decision comes amid fears of oversupply.
"The recent drop in oil prices reflects a combination of factors". "If that means trimming supply by a million [barrels per day], we will do it".
Commerzbank, Germany's second-largest lender, said Friday that oil producers must act to prevent prices tumbling.