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© Reuters. PHOTO FILE: Saudi Energy Minister Khalid al-Falih Speaks at India's Energy Forum in New Delhi
By Paul Carsten and Katya Golubkova
ABUJA / MOSCOW (Reuters) – Saudi Arabia will not reduce oil production alone to stabilize the market, Energy Minister Khalid al-Falih said on Wednesday.
The OPEC oil producer group and its allies, led by Russia, are meeting in Vienna next week in the context of worries over the slowdown in the global economy and rising oil supplies from the world. United States, which are not bound by an existing agreement to limit production.
The negative economic outlook pushed oil () to less than $ 60 a barrel of $ 85 a barrel in October, pushing Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), to suggest cuts in oil prices. significant production.
However, Riyadh has been under renewed pressure from US President Donald Trump, who has asked the kingdom to refrain from cutting production and contributing to lower oil prices.
The crisis surrounding the murder of journalist Jamal Khashoggi at the Saudi consulate in Istanbul last month is likely complicating any decision on oil production. Trump supported Saudi Crown Prince Mohammed bin Salman despite calls from many US politicians to impose stiff sanctions on Riyadh.
Falih was in Abuja to meet his Nigerian counterpart, Emmanuel Ibe Kachikwu. The Saudi minister said that signals from other OPEC members, Iraq, Nigeria and Libya, were positive in anticipation of the group's negotiations on December 6, with all ministers wishing to restore stability to the talks. oil market.
"We will … do all that is necessary, but only if we act together, as a group of 25," Falih told reporters, referring to OPEC and its allies. "In Saudi Arabia, we can not do it alone, we will not do it alone.
"Everyone aspires to make a decision that restores stability in the market … I think people know that leaving the market to itself without clarity or collective decision to balance the market does not help."
Brent oil () edged down to around $ 60 on Wednesday, wiping out gains of more than 1%, as the market is not convinced by the prospect of a reduction in OPEC next week. .
PUTIN RETURNS $ 60 OIL
Russian President Vladimir Putin will meet with Crown Prince Mohammed in Argentina at the weekend's G20 summit, where Trump will also participate.
Moscow has so far resisted further cuts in production and Falih has not said he had heard of a change in Russia's position.
Speaking in Moscow, Putin said that Russia was in contact with OPEC but that Moscow would be satisfied with oil at $ 60 a barrel. Putin had previously said that Russia would be satisfied with a price of 70 dollars.
"We are in contact with OPEC and we are ready to continue our joint efforts if necessary," Putin said.
Russian Energy Minister Alexander Novak has met with Russian oil producers this week to discuss cooperation with OPEC, two sources in the sector said without providing details.
Nigerian Kachikwu told reporters that it was too early to say whether Nigeria, an OPEC member, would participate in any cuts, but added that the organization was "resolved" to stabilize the market.
Falih said this month that the abundant supply of oil could force OPEC and its allies to reduce their production in 2019.
He said that at the time, the supply could exceed the demand of one million barrels per day, or 1% of global demand, suggesting that OPEC and its allies might try to reduce their production by this amount.
On Wednesday, Falih refused to answer the question of whether the cuts could reach more than 1.4 million bpd.
Nigeria and Libya have been excluded from previous cuts due to production declines caused by the disturbances, although their production has now recovered. Iran was also largely free of cuts.
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