OPEC, partners discuss oil supply cut of up to 1.4 million bpd


"We think 1 million bpd (cuts) is more realistic, not 1.4 million bpd".

Meanwhile, Brent crude for January delivery grew 0.65 dollar to close at 66.12 dollars a barrel on the London ICE Futures Exchange.

That puts OPEC on a collision course with US President Donald Trump, who publicly supports low oil prices and who has called on OPEC not to cut production.

The BSE oil and gas index was among the top sectoral gainers rising 2.16% or 292 points to 13,852 level.

"The oversupply in the market is a made-in-America phenomenon", Morse said Wednesday.

In its monthly report, Opec said world oil demand in 2019 would rise by 1.29 million barrels per day (bpd), 70,000 bpd less than predicted last month and the fourth consecutive forecast cut.

Oil prices are getting hit by both rising supply and falling demand. OPEC and its partners are said to be discussing a deeper-than-anticipated output cut.

He eschewed a direct response on Wednesday on whether curbs were needed, saying oil prices were adjusting after being hit by initial uncertainty about production in Iran, which later benefited from export waivers from US sanctions.

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Saudi Energy Minister Khalid al-Falih said on Monday OPEC agreed there was a need to cut oil supply next year by around 1 million barrels per day (bpd) from October levels to prevent oversupply.

"This will, in our view, cap any upside above $85 per barrel (for oil prices)", said Jon Andersson, head of commodities at Vontobel Asset Management.

In the same time period, Nigeria saw its production drop by 17,000 bpd to 1,751 million bpd, also according to secondary sources, remaining the largest oil producer in Africa.

What has been made apparent by OPEC and the IEA is that oil demand growth is slowing, while oil supply, most notably from the USA is rising to record levels at a rapid rate.

The comments from the minister, Khalid al-Falih, show the balancing act the USA allies face in dealing with President Donald Trump's actions related to the oil industry.

U.S. Energy Information Administration data showed crude inventories jumped 10.3 million barrels last week, the biggest weekly build since February 2017. Those lower prices likely quieted Trump, but production cuts could again boost prices at the pump.

Opec has been making increasingly frequent public statements that it will start withholding crude in 2019 to tighten supply and prop up prices. It may well be the case that Moscow is not opposed to lower oil prices-as it has indicated earlier as well-as they would eventually come to bite into USA shale drillers' performance.