An official from Kuwait, also an OPEC member, on Monday said that major oil exporters over the weekend had "discussed a proposal for some kind of cut in (crude) supply next year", although the official did not provide any detail.
"We need a reduction approaching one million bpd to balance the market", Khalid al-Falih told a ministerial committee of OPEC and Non-OPEC states in Abu Dhabi, AFP reported.
The UAE's energy minister, Suhail al-Mazrouei, said balancing the market would "require changes in the strategy" of producers.
Oil lost nearly a fifth of its value over the past month due to oversupply and signs of a softer-than-expected impact from U.S. sanctions on Iranian crude exports.
Addressing an energy conference in the United Arab Emirates, Falih, head of the rotating presidency of OPEC, said Saudi Aramco would commit to a 500,000-bpd cut starting next month.
Khalid al-Falih's comments follow a meeting in Abu Dhabi at the weekend, where the Organisation of Petroleum Exporting Countries (OPEC) and its allies started laying the groundwork to cut supply in 2019, reversing an nearly year-long expansion.
But they climbed on Monday as the world's biggest supplier Saudi Arabia announced plans to cut production in response to fears of oversupply.
"A new strategy needs to be formed, whether it's cuts or something else, it's not increasing production definitely". "Sanctions didn't cut so much out of the market as anticipated", he added.Читайте также: Jose Mourinho: Manchester United are in a top-four battle
OPEC and its allies will meet in Vienna on December 6-7 to decide on output policy for 2019.
Meeting to examine how to curb a sharp slide in oil prices, the producers said they "reviewed current oil supply and demand fundamentals and noted that 2019 prospects point to higher supply growth than global requirements".
Brent crude dropped below United States dollars 70 a barrel on Friday for the first time since April while the New York's West Texas Intermediate (WTI) sank below USD 60 a barrel, a nine-month low.
According to official figures, oil production in Bakken alone rose to the record level of 1.3 mln bpd last month, bottlenecking the majority of rail and pipeline routes.
It was "premature to talk about a specific action", he told reporters, asked about the possibility of an output cut to support sliding prices.
Russian Federation stated on Sunday that it did not believe that the oil market would face a probability of an oversupply next year.
Decision comes amid fears of oversupply.
Al-Falih said that demand for Saudi crude was weaker for the first time since the kingdom started boosting production in the May-June period.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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