ibusinesslines.com December 17, 2018

Saudi Arabia doesn’t need United States permission to cut oil output - energy minister

06 December 2018, 03:47 | Kelvin Horton

Oil prices skid amid global stock market slump, swelling US supply

Oil prices fall on swelling glut, economic growth concerns

Oil prices dipped on Thursday in tepid trading ahead of a meeting by producer group OPEC that is expected to result in a supply cut aimed at draining a glut that has pulled down crude prices by 30 percent since October.

The slide in U.S. oil followed a tumble in global stock markets on Tuesday and Wednesday, with investors anxious about the threat of a widespread economic slowdown.

"Hopefully, OPEC will be keeping oil flows as is, not restricted. The World does not want to see, or need, higher oil prices!" said Trump, who has repeatedly accused the cartel of keeping prices artificially high.

The uncertainty over possible production cuts caused oil prices to dip on Wednesday as investors wait on a decision.

His comments were echoed by his Nigeriancounterpart.

Earlier, Saudi Arabia urged OPEC and its allies to curb output by at least 1.3 million barrels per day, or 1.3 percent of global production.

"Markets...believe the production cut deal will be in range of 1-1.3 million bpd", ANZ bank said on Thursday.

OPEC members agreed to cut oil output on Thursday, although it's unclear by how much.

"If Mr. Hook has come to Vienna to apply for United States membership in OPEC, and this is the reason why he meets OPEC members, the request can be reviewed", Zanganeh told SHANA.

Saudi Arabia has been calling steep cuts in oil output and was expected to raise those demands during the meeting, but pressure from the US may convince Saudi leaders to take a softer tone.

Iran is suffering both as a result of lower prices and a decline in its oil exports because of the USA sanctions.

In October, the oil price reached a four-year high of $86, but since then the price has dropped again to about $60 per barrel.

So far, Trump has supported Saudi Arabia's version of the story, which exonerates Crown Prince Mohammed bin Salman of any involvement in the murder, despite U.S. intelligence agencies allegedly telling Trump the prince was involved.

The US "is not in a position to tell us what to do", he added. "OPEC and Russian Federation will be very careful about voluntary "blood letting". While Saudi Arabia, the group's biggest producer, will shoulder most of the burden, the kingdom wants commitments from other countries before completing a final deal.

Qatar, which will leave on January 1, played only a small role in the organisation, providing just under two percent of OPEC's total output.

Prices have already plunged more than 30% over the past two months and a barrel of Brent crude, the European benchmark, now stands at around $60.

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