BUSI­NESS OF OIL

The Mercury - - BUSINESS REPORT NEWS -

TEN­TA­TIVE DEAL ON OUT­PUT CUT

OPEC ten­ta­tively agreed to an oil out­put cut yes­ter­day but was wait­ing for a com­mit­ment from non-Opec heavy­weight Rus­sia be­fore de­cid­ing the ex­act vol­umes for a pro­duc­tion re­duc­tion aimed at prop­ping up crude prices. Rus­sian en­ergy min­is­ter Alexan­der No­vak flew home from Vi­enna ear­lier for talks with Pres­i­dent Vladimir Putin in St Peters­burg. No­vak re­turns to the Aus­trian cap­i­tal to­day for dis­cus­sions among Saudi-led Opec and the group’s al­lies. The price of crude has fallen al­most a third since Oc­to­ber but US Pres­i­dent Don­ald Trump has de­manded that Opec makes oil even cheaper by re­frain­ing from out­put cuts. “We hope to con­clude some­thing by the end of the day to­mor­row… We have to get the nonOpec coun­tries on board,” Saudi en­ergy min­is­ter Khalid al-Falih said be­fore the Opec meet­ing started. “If ev­ery­body is not will­ing to join and con­trib­ute equally, we will wait un­til they are.” Falih said all op­tions were on the ta­ble. Pos­si­ble out­put cuts by Opec and its al­lies ranged from 0.5-1.5 mil­lion bpd. I Reuters

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