Three Gulf Countries Say OPEC Likely to Cut Production
The tripartite consultative meeting of ministers of Petroleum of Saudi Arabia, the United Arab Emirates (UAE) and Oman signalled that OPEC would cut production in November, said reports.
According to the official Saudi News Agency (SPA), the meeting was convened “in the framework of OPEC’s intensive consultations and coordination among member states to stop the drop in oil prices and maintain their stability.”
AFP reported after tha meeting that Riyadh, Abu Dhabi and independent producer Oman issued a joint statement clearly in favour of another output cut to boost prices.
"We have already reduced our production three times. I cannot see what prevents us from doing it again," Saudi Oil Minister Ali Al-Nuami told reporters at a press conference in the Emirati capital.
Independent oil producer Oman voiced "readiness to cut production" and to cooperate with OPEC and non-OPEC nations to boost slumping prices, in the statement.
"The Sultanate of Oman has expressed its readiness to cut production and to cooperate with the rest of the producing countries from OPEC and non-OPEC in order to maintain the price band target," said the statement after a meeting of oil ministers from Oman, Saudi Arabia and the United Arab Emirates (UAE).
"The ministers noted with great concern the continued deterioration in crude oil prices to levels unseen since two years," it said.
The falls were "caused by the most recent downward revision in world oil demand for the the current year as well as next year and the excess supply and growing commercial stocks as compared to last year."
The statement was released after Nuaimi met UAE Oil Minister Obeid Al Nasseri and Oman's Mohammad bin Hamad Al-Romhi at a plush seafront hotel in Abu Dhabi.
A proposal to cut output by a further 750,000 to one million barrels per day (bpd) will be on the agenda of a November 14 meeting of the OPEC oil cartel, the Middle East Economic Survey (MEES) reported Saturday, cited by AFP.
"The prospect of another OPEC production cut has ... grown stronger," the industry newsletter said.
MEES said no decision was expected to be taken ahead of the ministerial gathering in Vienna, as OPEC heads of state continue consultations about market stability.
The Nicosia-based weekly noted "growing evidence that OPEC members are beginning to abide by the quotas agreement which came into effect from September 1," when the cartel slashed production by one million bpd – Albawaba.com
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