OPEC still debating oil production cut

OPEC is still debating how much oil it should remove from world markets following a price crash in recent mo...

Posted: Dec 6, 2018 6:03 PM
Updated: Dec 6, 2018 6:03 PM

OPEC is still debating how much oil it should remove from world markets following a price crash in recent months.

Members of the oil cartel meeting in Vienna were ready to ignore President Donald Trump's repeated calls to keep output steady. But they were unable to conclude an agreement on Thursday, forcing the cancellation of a scheduled press conference. The scale of the production cut remains subject to debate that will continue Friday.

Business and industry sectors

Business, economy and trade

Donald Trump

Energy and utilities

Oil and gas industry

Political Figures - US

Banking, finance and investments

Commodity markets

Energy commodities

Financial markets and investing

Government organizations - Intl

Oil prices

OPEC

Continents and regions

Middle East

Middle East and North Africa

Saudi Arabia

A senior OPEC delegate told CNN Business that members were trying to achieve a consensus to cut output by 1.3 million barrels a day. But OPEC's de facto leader, Saudi Arabia's energy minister Khalid Al-Falih, told reporters a cut on that scale might be "excessive" given a recent decision by Canada to scale back its production.

"The number that we need is going to be less than 1.3 [million] — is it a million, or slightly less, slightly more ... we have all day today, and some of tomorrow to determine the best number," Al-Falih said.

The Canadian province of Alberta announced last week it will pump 325,000 barrels a day fewer from January 1 because it is running out of space to store excess oil.

OPEC is seeking to stabilize oil markets after US crude prices plunged 22% in November, marking the the worst month since the global financial crisis in October 2008.

Analysts had said that a cut of around one million barrels per day would not be enough to balance the market in the first half of 2019, and oil prices fell again on Thursday.

Speaking after Thursday's talks, Al-Falih said he hoped to reach an agreement that would reduce production by around one million barrels per day. However, he told CNN Business' John Defterios that he wasn't "confident" a deal would be struck.

US crude oil was trading about 3.6% lower to $51 a barrel. It hit a four-year high above $76 in early October. Brent crude fell 3.2% to $59.60 a barrel.

The market is awash with oil. The United States is pumping at record levels and recently surpassed Russia and Saudi Arabia for the first time since 1973 as the world's largest producer.

Meanwhile, Iran is still selling crude despite American sanctions. The U.S. surprised OPEC and other producers by granting waivers to eight countries to continue buying Iranian oil after it reimposed sanctions in early November.

The International Energy Agency warned last month that supply is expected to exceed demand through 2019. In its November market report, OPEC said demand for its oil next year would be about 1.1 million barrels a day less than in 2018, and 1.4 million below current OPEC production.

OPEC will now have to agree on the size of the production cut and persuade Russia to join in. The alliance between OPEC and the world's second largest producer dates back to 2016, when they first agreed to cut production to halt a damaging price collapse.

The meeting with Russia is scheduled for Friday.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 73287

Reported Deaths: 3036
CountyConfirmedDeaths
Marion15701725
Lake7496275
Elkhart480184
Allen3835163
St. Joseph342381
Hamilton2723104
Vanderburgh192213
Hendricks1871108
Cass17869
Johnson1741118
Porter129439
Clark120247
Tippecanoe118911
Madison94365
LaPorte89430
Howard88465
Kosciusko84712
Bartholomew78047
Marshall77422
Floyd77246
Monroe74630
Delaware71452
Dubois68712
Boone67246
Noble66329
Hancock64738
Vigo61910
Jackson5855
Warrick57930
LaGrange55710
Shelby54627
Grant52630
Dearborn49628
Morgan46734
Clinton4303
Henry37620
Wayne36810
White36110
Montgomery35221
Lawrence34227
Decatur33532
Harrison32723
Putnam2868
Miami2692
Scott26610
Daviess26420
Greene24634
Franklin24114
Jasper2342
DeKalb2304
Jennings22412
Gibson2214
Steuben2073
Ripley1997
Fayette1867
Carroll1852
Perry18412
Starke1777
Posey1700
Orange16924
Wabash1653
Fulton1642
Wells1622
Jefferson1602
Knox1510
Whitley1516
Washington1391
Tipton1379
Spencer1313
Huntington1223
Newton11810
Randolph1184
Clay1165
Sullivan1131
Adams962
Jay910
Owen871
Pulaski791
Rush764
Brown731
Fountain732
Blackford632
Ohio635
Benton610
Pike530
Parke511
Vermillion490
Switzerland460
Crawford440
Martin430
Union390
Warren221
Unassigned0202

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 99969

Reported Deaths: 3668
CountyConfirmedDeaths
Franklin18182523
Cuyahoga13414499
Hamilton9583255
Lucas5288323
Montgomery431894
Summit3523222
Marion292245
Butler289163
Mahoning2532255
Pickaway238342
Stark1813139
Warren176739
Lorain173678
Columbiana165660
Trumbull1518106
Fairfield136732
Delaware129219
Licking126049
Clark114214
Lake111138
Wood103058
Clermont92111
Medina91435
Miami83238
Tuscarawas78114
Portage75461
Allen73244
Greene68412
Belmont62126
Mercer60513
Richland60012
Erie57027
Ashtabula56246
Geauga55444
Wayne52958
Ross4684
Huron3955
Darke39329
Ottawa37726
Sandusky37316
Hancock3723
Athens3561
Madison35510
Holmes3276
Lawrence2790
Auglaize2506
Union2461
Muskingum2251
Jefferson2242
Scioto2241
Putnam20517
Seneca2043
Knox2037
Washington20222
Preble2012
Coshocton1926
Shelby1904
Crawford1745
Champaign1732
Morrow1682
Hardin16412
Clinton1626
Highland1561
Logan1522
Fulton1471
Wyandot1458
Ashland1433
Defiance1424
Williams1343
Brown1272
Perry1233
Guernsey1167
Henry1162
Hocking1169
Fayette1120
Carroll1115
Monroe9118
Pike760
Jackson740
Van Wert711
Paulding670
Gallia651
Adams592
Meigs380
Vinton312
Harrison261
Morgan250
Noble170
Unassigned00
Fort Wayne
Clear
66° wxIcon
Hi: 89° Lo: 67°
Feels Like: 66°
Angola
Clear
63° wxIcon
Hi: 88° Lo: 67°
Feels Like: 63°
Huntington
Clear
64° wxIcon
Hi: 87° Lo: 67°
Feels Like: 64°
Decatur
63° wxIcon
Hi: 88° Lo: 67°
Feels Like: 63°
Van Wert
61° wxIcon
Hi: 88° Lo: 65°
Feels Like: 61°
Sunny, Seasonable Saturday
WFFT Radar
WFFT Temperatures
WFFT National

Community Events