: THE BUSINESS TIMES Energy & Commodities - [ABU DHABI] Major oil producers said Sunday that crude supply next year would outstrip demand, calling for new strategies based on production adjustments.. Read more at The Business Times.
Oil ministers warned that the gap between supply and demand could widen next year, which “may require new strategies to balance the market.”
OPEC is likely to agree to an oil production cut when it meets next month in Vienna as oil prices enter bear market territory and signs of oversupply loom. Saudi Arabia confirmed that it would cut its own oil supplies next month and Russia signaled that it could follow suit.
The oil market looks poised to swing into oversupply next year as growing global crude output swamps shaky demand, a committee of allied producer nations said on Sunday.
The US administration has vowed to reduce Iranian oil exports to zero and US President Donald Trump has put pressure on Saudi Arabia to raise output to cool the market.
Khalid al-Falih told reporters that Saudi Aramco’s customer crude oil nominations would fall by 500,000 bpd in December versus November due to seasonal lower demand. The cut represents a reduction in global oil supply of about 0.5 percent. Saudi Arabia has increased output by just about 1 million bpd