OPEC+ to Consider Deeper Output Cuts, Iraq Oil Minister Says

The OPEC+ alliance will consider deeper cuts to crude production when oil producing nations meet in Vienna on Dec. 5, Iraq’s oil minister Thamir Ghadhban said.

The reduction could be about 400,000 barrels a day, he told reporters in Baghdad on Sunday, adding that Iraq complied with its commitment to lowering output in November. "This figure has been discussed and reached between OPEC ministers as a result of careful studies."

"There are viewpoints for OPEC+ to do further cuts, but not as big as 1.2 million barrels a day," Ghadhban said. "Such cuts will lead to market stability, maintain shipments to consumers."

Just one out of 35 analysts and traders in a global survey by Bloomberg expect OPEC and its allies will agree a further reduction when they meet. Most of them see the 24-nation coalition -- which cut output by 1.2 million barrels a day this year to prevent a glut -- deciding to prolong their existing supply limits until the middle of 2020.

Oil had been on a tear, rising 11% from early October to Nov. 26 on signs the U.S. and China were closing in on a partial trade deal. Earlier last week, Brent climbed to almost $65 a barrel for the first time since September, before dipping to close at about $62 on Friday.

Source: Bloomberg