Saudis See Need to Cut Oil Output by 1 Million Barrels a Day
- Kingdom to trim exports by 500,000 barrels a day in December
- OPEC and allies closer to oil cuts as bear market adds urgency
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Saudi Arabia expressed the need for oil producers to cut 1 million barrels a day from October levels and announced fewer shipments from next month, as OPEC and its allies began laying the groundwork to reduce oil supply in 2019, reversing an almost year-long expansion.
Saudi Energy will export 500,000 fewer barrels a day in December than this month, taking the lead in OPEC to counter the price rout battering the finances of group members and energy companies alike. While a meeting with other producers on Sunday yielded no change in supply policy, OPEC+ warned in a statement that it might need “new strategies,” raising the prospect of a wider and coordinated cut in 2019.