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Return to oil production cuts in 2019 cannot be ruled out - OPEC source

Reuters  |  LONDON 

By Alex and Ahmad Ghaddar

LONDON (Reuters) - A return to by OPEC and its allies next year cannot be ruled out, a senior OPEC source said on Wednesday, to avert a possible supply glut that could weigh on prices.

The source was responding to a report by Russia's agency that and had started bilateral discussions over possible curbs to output in 2019.

Saudi-led OPEC and its allies including decided in June to relax output curbs in place since 2017, after pressure from U.S. to reduce and make up for supply losses from

A second delegate from the Organization of the Petroleum Exporting Countries, asked whether discussions pointed to a return to supply cuts in 2019, said: "Certainly not the other way around."

have come under downward pressure from rising supplies, even though Iranian exports are expected to fall because of new U.S. sanctions. Forecasts of a 2019 supply surplus and slowing demand have also dented the market.

Brent crude had dropped from a four-year high in October above $86 a barrel to $71 on Tuesday. Prices rallied back above $73 on Wednesday, supported by the report.

A ministerial committee of some OPEC members and allies meets on Sunday in to discuss the market and outlook for 2019.

This group, called the JMMC, could make a recommendation on 2019 output policy to the next decision-making meeting of OPEC and non-OPEC oil ministers, a third OPEC source said. That meeting takes place on Dec. 6-7 in

"Any serious discussion will be towards the December meeting," this source said.

(Editing by Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 07 2018. 20:36 IST