Oyindamola Alamu
Top OPEC producer, Saudi Arabia has urged the group to trim output and said that a cut of 1 million barrels would be sufficient. That level is less than what many analysts anticipated
Oil producers are merging a plan to remove 1.3 million barrels per day from the market. However, Saudi Energy Minister Khalid al-Falih insisted that a cut of 1 million barrels would be adequate.
Some energy analysts questioned the fact that a reduction of 1million barrels per day may not be enough to balance supply and demand in 2019, especially considering that key producers including Saudi Arabia, Russia and Iraq have been increasing output.
OPEC hesitatingly agreed on oil output cut while waiting on Russia before deciding the exact volumes for a production cut. It was said that a group’s preferred level of supply cuts would effectively be on Moscow’s contribution and to will be much difficult for Moscow to cut
oil output over the winter because of the cold conditions at Russian oil fields.
