With crude oil-producing nations looking to put a floor under prices, mulling perhaps the deepest output cuts this decade to prevent a glut, sources close to Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman say he is primarily focused on building consensus.
On Wednesday crude oil prices rose ahead of a meeting of OPEC+ and its allies to discuss whether to extend production curbs to support the market, while industry data showing that U.S. crude stockpiles fell more than expected helped to lift prices.
OPEC crude oil output has bounced in October from an eight-year low as a rapid recovery in Saudi Arabian production from attacks on oil plants more than offset losses in Ecuador and voluntary curbs under a supply pact, a Reuters survey found.
OPEC crude oil output has fallen to an eight-year low in September after attacks on Saudi oil plants cut production, deepening the impact of a supply pact and United states sanctions on Iran and Venezuela.
In July, OPEC’s fourteen members pumped a combined 29.42 million bpd, a decline of 280,000 bpd compared to June, according to the Reuters survey that tracks supply to the market from shipping data and sources at OPEC, oil companies, and consulting firms.
On Friday Energy Minister of Saudi Khalid al-Falih said that an extension of a 1.2 million barrel per day oil output cut beyond this month was all but agreed among OPEC members but still needed discussions with non-OPEC allies in the deal.
OPEC and a group of allies led by Russia are trying to keep supply and demand in balance and stabilize prices by pumping less oil. Over the weekend, a committee representing the so-called OPEC+ alliance strongly signaled the group will extend the policy, which has helped to boost oil prices by about $20 a barrel this year.