Oil Producers May Compel Opec to Cut Supply

There are indications that major oil producers may compel Organisation of Petroleum Exporting Countries (OPEC) to cut supply when the group meets on September 9, in Vienna, Austria.

This was sequel to the sharp drop in crude oil price to below $110 per barrel yesterday, after reaching a record high of $147.42 per barrel on July 11.
Iran, world’s fourth-largest crude producer. stated yesterday that OPEC may need to cut oil supplies by about 1.5 million barrels per day (bpd), or nearly five per cent, to balance global markets by early next year.

Iran’s OPEC Governor, Mohammad Ali Khatibi, in an interview with Reuters yesterday noted that the market currently is oversupplied and will definitely have an impact on price and investments in the oil industry.

He said OPEC should consider a two-step plan to cut supplies at its September meeting.

AllAfrica