Will Gas Prices Go Up? Saudi Arabia to Cut Production

Representatives from here major oil producers met in Abu Dhabi at the weekend

"We have cut in the past to reach the market balance, and if we need to cut production to keep the market balanced, we will", Mr Al Mazrouei said.

Brent for January settlement gained 65 cents to settle at US$66.12 on the London-based ICE Futures Europe exchange.

The Indian market too welcomed the fall in global oil prices and opened higher today. US crude production climbed to 11.7 million bpd, the highest on record, according to EIA data on Thursday.

He said Iran is a country, which is always resilient, as it moves from one crisis to another, adding that the issue may have little effect on its partners.

Oil rose about 1 percent on Wednesday, recouping some of the previous session's heavy sell-off, on growing prospects that the Organization of the Petroleum Exporting Countries and allied producers would cut output at a meeting next month to prop up prices.

As a result, oil inventories are rising.

U.S. bank Morgan Stanley said in a note on Wednesday that China's economic "conditions deteriorated materially" in the third quarter of 2018, while analysts at Capital Economics said China's "near-term economic outlook still remains downbeat". On Tuesday, OPEC cut its forecast for oil demand growth in 2019 for the fourth consecutive month.

"Increased supply from OPEC members of the Vienna Agreement saw compliance in October ease to 105%, the lowest since September 2017", the report read. "I would not want to focus purely on production cuts", Russian Energy Minister Alexander Novak said in a Bloomberg television interview on Sunday.

Now, we've spoken many times before about the numerous reasons why crude prices can plunge: artificial manipulation from short sellers and institutional monkeyshines, geopolitical tensions, distortions in supply and demand, even outright oversupply - we've seen it all before.

As for the justification for the cuts, the International Energy Agency on Wednesday pointed out that global oil supply will outpace demand due to a "relentless" rise in output and slower economic growth in some countries. Oil is priced in dollars and the USA currency has been strong of late.

On the supply side, a surge in US production is contributing to rising stockpiles.

Anxious by a drop in oil prices due to record supply from Saudi Arabia, Russia and the United States, the Organization of the Petroleum Exporting Countries is talking of a U-turn just months after increasing production.

Oil prices posted the deepest plunge in more than three years in the worldwide market.

American shale fields have pushed USA oil production to all-time highs this year with crude output now at 11.6 million bpd, helping make the United States self-sufficient in energy. He's kept at it even as prices have plunged, tweeting on November 12 that he hoped Saudi Arabia and OPEC wouldn't cut output.

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