OPEC de­lays oil out­put move un­til Rus­sia talks

The Sun News - - Business - BY KIYOKO MET­ZLER AND CARLO PIOVANO

OPEC coun­tries hop­ing to sup­port the price of oil put off their de­ci­sion Thurs­day on how much to re­duce oil pro­duc­tion un­til they ne­go­ti­ate with ally Rus­sia on Fri­day on how much it will con­trib­ute to the cut.

Some saw it as a sign that the group of oil-pro­duc­ing na­tions may not have the po­lit­i­cal unity to rein in sup­ply and is suf­fer­ing un­der po­lit­i­cal pres­sure from U.S. Pres­i­dent Don­ald Trump to not push prices up again. Oth­ers in­ter­preted it as a tac­tic to get Rus­sia to agree to big cuts as well.

The price of oil has fallen about 25 per­cent be­cause ma­jor pro­duc­ers – in­clud­ing the U.S. – are pump­ing oil at high rates. It fell fur­ther on Thurs­day after OPEC’s lack of ac­tion and amid broader con­cerns about global eco­nomic growth.

Saudi Ara­bia, the heavy­weight within OPEC, said Thurs­day it was in fa­vor of a cut of about a mil­lion bar­rels a day.

But upon leav­ing the meet­ing, Saudi oil min­is­ter Khalid Al-Falih said “we’re still de­lib­er­at­ing.” He said the OPEC coun­tries were still dis­cussing the distri­bu­tion of the cuts be­tween them.

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