OPEC official says output cuts may be needed

SAN FRANCISCO (MarketWatch) — An Iranian official in the Organization of Petroleum Exporting Countries said Saturday that the producers group is considering leaving oil production levels unchanged or perhaps even trimming them to shore up flagging prices and defend market share.

“The market is oversupplied by at least 1 million barrels a day. If OPEC would like to remove this additional oil out of the market, then OPEC has to cut some production,” OPEC governor Mohammad Ali Khatibi told Dow Jones in a telephone interview.


“There will be maybe two options. One option is maintaining the level of production. It means OPEC will roll over the production. The other option will be some decrease in production,” he added.

The topic will lead OPEC’s agenda when representatives of the group’s 13 member nations gather Sept. 9 in Vienna to discuss production policy.

MarketWatch