The Opec oil cartel is considering deeper cuts to production next year to avert a price slump in the market as the global economy falters. Ministers from some of the world’s biggest “petro-nations” are expected to cut an extra 400,000 barrels of oil a day from the global market and may consider even deeper cuts of up to 800,000 barrels, according to reports. The tighter oil production policy already has the support of ministers from Saudi Arabia and Iraq and is expected to be agreed by the 14-strong cartel at Opec’s headquarters in Vienna before the end of the week. Opec has been reining in its production for the last three years to help the oil market recover after plunging to 12-year lows in early 2016. It may resort to even deeper cuts to shore up global oil prices against a flood of new production into the market from countries outside the cartel, and a slowdown in the world’s appetite for crude.
Guardian 5th Dec 2019 read more »