Saudi Arabia has indicated it will cut oil exports by up to half a million barrels a day in December, the first sign that OPEC has begun to cut output. Saudi Energy Minister Khalid al-Falih said the kingdom had boosted production in November, but would begin to reduce it starting in December. But he added that it was too early to address OPEC's reduction in production levels.
Al-Falih said that Saudi Arabia will cut output by 500,000 barrels per day as seasonal demand falls. He said that ideally, we do not like to cut off we will only cut if we see abundant supplies continue to appear quite frankly. We see some signs of this coming out of the US, we have not seen signs globally, and we cannot expect it to continue until 2019.
As for the move to the Minister of Oil of Oman, he said on Sunday that a number of international producers agree that the need to pump less oil in 2019 and reduce the amount of oil per million barrels per day a large number. Producers are considering a range of cuts, including a reduction in production of up to one million barrels a day.
