OPEC may need to cut output in Sept: Algeria

OPEC will need to cut output when it next meets in September if there is not enough demand for its oil, Algeria’s energy and mines minister said on Monday.

“I think OPEC’s objective is to satisfy demand in the world market and to meet any real demand,” Chakib Khelil told reporters in Milan on the sidelines of a conference.

“It will cut only if demand is destroyed or it disappears in the market. If we see demand does not exist in the market in September, we will have to cut.”
The Organization of the Petroleum Exporting Countries, which next meets on September 9 to reconsider policy, has said it will reduce production by 4.2 million barrels per day from last September’s output.

At its most disciplined, OPEC delivered an estimated 80 percent of its promised cuts early this year. Compliance has since fallen to about 70 percent, but Khelil said it was good.

Reuters