OPEC, Russia Move Closer to Cutting Oil Output

Oil prices skid amid global stock market slump, swelling US supply

Trump asks OPEC not to cut production

While the topic of the Saudi-U.S. meeting was not immediately clear, it's probably safe to assume that the energy minister of OPEC's de facto leader and the U.S. official for Iran discussed the current and future impact of the U.S. sanctions on Iran on the global oil market. OPEC's de facto leader, Saudi Arabia, has indicated a need for steep output reductions from January, fearing a glut, but Russian Federation has resisted a large cut.

President Trump is pressuring OPEC to increase oil production as members of the organization are set to meet in Vienna on Thursday.

Over the past month, U.S. President Donald Trump has expressed hopes that OPEC would not cut production, then sent out a thank-you-Saudi Arabia tweet and urged for even lower oil prices, while basically declining to blame Saudi Arabia and its Crown Prince Mohammed bin Salman for the murder of Jamal Khashoggi.

Saudi Arabia sought to persuade Russian Federation on Wednesday to cut oil production substantially with OPEC next year in an attempt to arrest a decline in the price of crude and prevent another global glut.

Trump's comment came as members of the Organization of Petroleum Exporting Countries and other oil-producing nations prepared to meet Thursday and Friday, December 6-7, in Vienna to discuss lowering their output.

Members have hinted they plan to cut output by 1.3 million barrels a day, which President Trump fears would cause fuel prices to rise.

Russia, Saudi Arabia and the United States have been vying for the position of top crude producer in recent years.

Trump, who has made the US economy one of his top issues, has frequently complained about OPEC this year, as higher crude oil prices have in turn raised fuel prices for consumers and businesses.

The U.S. pledge to bring Iran's oil exports down to zero did not materialize, and the market was left oversupplied, with oil prices plunging some 30 percent from the four-year-highs reached in early October.

Washington also gave sanctions waivers to some buyers of Iranian crude, further raising fears of an oil glut next year.

Despite the Iranian official's remarks, Kuwait's oil ministry said on its Twitter account on Wednesday that a long-term cooperation agreement is expected to be signed between OPEC and non-OPEC countries.

Trump has repeatedly accused the oil cartel of keeping prices artificially high. Trump has backed Saudi Crown Prince Mohammed bin Salman despite calls from many US politicians to impose stiff sanctions on Riyadh.

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