Publicado: Jue, Diciembre 06, 2018
Financiera | Por Marilu Caballero

Trump urges against oil production cut ahead of OPEC meeting

Trump urges against oil production cut ahead of OPEC meeting

Saudi Arabia seeking to persuade Russian Federation on Wednesday to cut oil production substantially with OPEC next year.

Russia, Saudi Arabia and the United States have been vying for the position of top crude producer in recent years.

Iranian oil minister has lashed out at U.S. special representative for Iran Brian Hook over his "meddlesome" meetings with members of the Organization of Petroleum Exporting Countries in Vienna, asserting that OPEC is an independent body that does not take orders from the US.

"Hopefully OPEC will be keeping oil flows as is, not restricted". In preparatory meetings ahead of this week's summit, delegates have said a cut of as much as 1.3 million barrels a day next year is needed as demand growth slows and USA shale production surges.

"There is little disagreement among OPEC members over the need to cut, but there is not yet consensus over how much", said Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd.

Data Source Bloomberg
Trump asks OPEC not to cut production

The production surge took place in the run-up to Trump's pledge to sanction Iran's oil sector on November 4 and later decide to give waivers to some customers.

USA special representative for Iran, Brian Hook, met with Saudi Energy Minister Khalid Al-Falih in Vienna on Wednesday, according to a person familiar with the matter.

While ministers met in OPEC's Vienna headquarters, Trump tweeted that the "world does not want to see, or need, higher oil prices!". Saudi Arabia, Russia and the UAE have raised output since June after Trump called for higher production to compensate for lower Iranian exports due to new USA sanctions.

WTI has been a choppy play in North American trade on Wednesday ahead of the OPEC meeting in Vienna tomorrow. Trump has backed Saudi Crown Prince Mohammed bin Salman despite calls from many USA politicians to impose stiff sanctions on Riyadh. Trump said on Twitter. "They'd like to see lower gasoline prices at the pumps, because that's important for votes in the United States." . "Also if Saudis are obnoxious with a deep output cut, it will spur the Democrats in Congress to go more actively for the Nopec legislation and the withdrawal of USA support for the Saudi-backed forces in the war in Yemen", Ross said. That will likely lead to the withdrawal of US support for the Saudi-backed forces in the war in Yemen. This comes as US crude oil is now trading at $53 a barrel, which is down from a four-year high.

So far, OPEC members have lost $9 billion in total against $2.7 billion earned by the producers which have increased their production, he said. "It won't be called a cut but will effectively mean a cut, which will also be hard to quantify", McNally said.

United Nations chief Guterres calls for more action to tackle climate change
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