Saudi Arabia Will Probably Cut Oil Supply, Riyadh Banker Says

(Bloomberg) — Saudi Arabia, the world’s biggest crude oil exporter, will probably reduce supplies before the next OPEC meeting in December after the group pledged to respect output quotas, a Riyadh-based banker said.

The Organization of Petroleum Exporting Countries told its members on Sept. 10 to “strictly” comply with production quotas after oil prices fell 30 percent from a record. Prices have since slid another $10 to $92 a barrel in New York. OPEC next meets in Oran, Algeria, on Dec. 17.


“They will continue to reduce production until the December meeting,” John Sfakianakis, chief economist at Saudi British Bank, said in an interview in London today. The kingdom will likely pump about 9.2 million barrels a day by the next gathering, he said, compared with 9.5 million last month.

Saudi Arabia is “fine if prices stay around $80-$90 in the next few months,” Sfakianakis added. “They will take action if they see continued pressure for prices to fall below $80.”

Bloomberg