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OPEC moves to combat plummeting oil prices

13 November 2018

Russia's Novak said it's "hard to say" if oil markets will be over-supplied next year.

Saudi Arabia, the world's top oil exporter, has been pumping 10.7m bpd since October, according to Falih.

"We need a consensus", he said, indicating that non-OPEC Russia would need to approve any decision.

The world's second and third crude producers - after they were overtaken by the United States thanks to shale oil - Russian Federation and Saudi Arabia are the core of an alliance of producer nations that succeeded in solidifying oil prices after the 2014 crash.

The worry: The Organization of the Petroleum Exporting Countries (Opec), which includes Saudi Arabia and Iraq and Iran, and other non-Opec oil producers such as Russian Federation met in Abu Dhabi on Sunday to discuss oil cuts.

OPEC and non-OPEC energy ministers are due to meet in early December in Vienna to assess the global market.

Global oil producers - including OPEC and Russian Federation - pump out roughly 100 million barrels of oil per day, so a 1% cut in production might not seem like a big deal.

Meanwhile, Sultan Ahmed al-Jaber, the head of the state-run Abu Dhabi National Oil Co., said the UAE planned to increase oil production to 4 million barrels a day by 2020 and 5 million barrels a day by 2030.

USA benchmark West Texas Intermediate crude fell 18 cents a barrel to trade at $60.01 a barrel by 2:24 p.m. EST (1724 GMT).

"Supply is about 100 million barrels a day and demand is about 100 million barrels a day ... I think those reports are going to be even weaker because they will have to adjust for the increase in USA production", Jakob said.

Russia, the world's second-biggest producer, said it would commit to any new agreement among producers to cut output.

While Riyadh has chose to lower production, the rest of the attendees did not come to a consensus on the matter, according to Falih.

Kazakh deputy energy minister Magzum Mirzagaliyev told reporters in Abu Dhabi that he understood Saudi Arabia was suggesting using August-October output levels as a baseline for determining cuts.

"We have to study all the factors", he said.

"We'll make sure we'll steer the global oil markets ... to make sure we don't jerk the oil markets into swinging either side", said Mr Al Falih.

He also attributed the sharp drop in prices to "microeconomic uncertainties" and signs of a build-up in crude inventories.

He also did not clarify whether the exemptions to production cuts extended to Iran in 2016 after its re-entry into the global oil markets, following the lifting of nuclear-related sanctions, would be extended this time after the imposition of United States sanctions.

Dudley said the waivers had been unexpected, so the market had been readjusting.

OPEC moves to combat plummeting oil prices