Trump urges against oil production cut ahead of OPEC meeting

  • Trump urges against oil production cut ahead of OPEC meeting

Trump urges against oil production cut ahead of OPEC meeting

Yet the group still lacks an agreement on crucial details that could convince traders they're serious about preventing an oversupply next year and boosting prices. "It is still under discussion", one delegate said.

Members have hinted they plan to cut output by 1.3 million barrels a day, which President Trump fears would cause fuel prices to rise. A delegate from another country said some members believe a smaller reduction would be adequate.

Oil markets rose on Wednesday ahead of the meeting.

When President Trump announced his decision to pull the USA out of the Iran Nuclear Deal and reimpose sanctions on the Islamic Republic, many oil producers ramped-up production over fears of the effects the sanctions would have on trading. But they're contending with vociferous opposition from the US president, who's taken to using his Twitter account to berate the group's policies and sees low oil prices as key to sustaining America's economic growth.

President Trump's Tweet could be seen as a warning to the cartel to measure any production cuts carefully, but OPEC has always been the target of Trump's tweets, even prior to his presidency, chastising the organization for restricting oil during the near-$100/barrel days.

The supply overhang will be the focus of a meeting of the Organisation of the Petroleum Exporting Countries (OPEC) on Thursday, at which the producer group is expected to decide some form of supply cut aimed at supporting crude prices.

"I am optimistic. There will be a deal, but it is unclear how much OPEC and how much non-OPEC will contribute". "How OPEC communicates this to the market may be just as important as what gets done". "OPEC and Russian Federation will be very careful about voluntary "blood letting". The person asked not to be identified because the talks were private. Those differences persisted after Wednesday's meeting, OPEC delegates said.

Oil output from the world's biggest producers - OPEC, Russia and the United States - has increased by a 3.3 million bpd since the end of 2017, to 56.38 million bpd, meeting nearly 60 per cent of global consumption. An oil price around $60 suits the needs of producers and consumers and it should remain at that level in January, he said.

Who might agree to an OPEC crude supply deal?

In the Middle East, Saudi Arabia produced a record 11.3 million barrels per day (bpd) in November, adding to the swelling glut. "Especially the big boys - they would want to keep this cut very close to their heart".