OPEC Agrees to Cut Crude Production 800,000 Bpd in 1H19
12/07 11:06 AM
OPEC Agrees to Cut Crude Production 800,000 Bpd in 1H19 WASHINGTON, D.C. (DTN) -- The Conference of the Organization of the Petroleum Exporting Countries released a joint communique this morning outlining the agreement on oil production for a six-month period beginning Jan. 1, 2019 with a review in April 2019 reached today. After taking note of oil market developments and reviewing the market outlook for the remainder of 2018 and 2019, the Conference decided to adjust OPEC overall production down by 800,000 bpd from October levels, effective January 2019. OPEC crude production in October was 32.9 million bpd. During the 175th meeting in Vienna Thursday and Friday, the Conference discussed growing market volatility and the broad consensus on the prospects for 2019 that suggests oil supply outpacing demand while taking into account prevailing uncertainties. It also noted that the global economic growth outlook for 2019 is slightly lower than for 2018, which combined with the implications of macroeconomic policies and associated uncertainties, could potentially have ramifications for global oil demand next year. The Conference expressed gratitude to all OPEC Member countries, as well as non-OPEC countries that participated in "Declaration of Cooperation" for their continued commitment to achieving and sustaining balance and stability in the market, while acknowledging the crucial role played by participating non-OPEC countries. News reports indicate non-OPEC oil producers led by Russia will cut their production 400,000 bpd during the six-month period. (c) 2018 DTN. All rights reserved.