Saudi may face OPEC pressure to trim supply

LONDON (Reuters) – Saudi Arabia, the world’s top oil exporter, may come under pressure from within OPEC ranks to reduce supplies to prevent a further fall in crude prices when the group meets on Sept. 9.

While OPEC is unlikely to change its official supply target at the meeting in Vienna, it is pumping almost 1 million barrels per day (bpd) more than the target largely because of an increase from Saudi Arabia.

The extra Saudi oil and declining demand from slowing economies in the West have helped lower prices to $117 a barrel from a record high of $147.27 in July. The drop has prompted OPEC price hawks Iran and Venezuela to suggest a cut in supplies.

“I think there will be pressure on Saudi Arabia to rein in some of its recent unilateral increases,” said Julian Lee, analyst at the London-based Centre for Global Energy Studies.

“It all depends on what level of prices Saudi Arabia wants to see.”

Reuters