Oil slips to under $59 a barrel as Saudi Arabia suggests production cut
De facto Opec leader Saudi Arabia says it will not shoulder the burden of trimming production alone, and an overall cut including Russia of one-million bpd has been suggested
London/Dubai/Tehran — Saudi Arabia proposed a moderate oil-production cut from Opec and its allies that would gently rebalance the market, seeking to walk a fine line between preventing a surplus and appeasing US President Donald Trump. “We in the kingdom are going to be advocating something adequate to balance the market,” energy minister Khalid Al-Falih told reporters at the opening session of the group’s meeting in Vienna on Thursday. A cut of about one-million barrels a day from the whole group should be adequate and “certainly we don’t want to shock the market”. Events in the Austrian capital weren’t the only story on Thursday. As ministers sat down at the headquarters of oil cartel Opec, Russian oil minister Alexander Novak flew to St Petersburg to meet President Vladimir Putin to decide on their country’s contribution. If the group’s most important ally in the broader Opec+ coalition decides to make a sizable cut, the cartel will follow up. Saudi Arabia is equally prepared fo...
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