UPDATED 6:38 AM PT — Friday, Dec. 7, 2018
The Saudi energy minister is doubting an OPEC deal to cut oil production will be reached by Friday. After OPEC meetings on Thursday, Saudi Arabia’s Energy Minister — Khalid Al-Falih — said he is not confident OPEC would convince non-member Russia to further output cuts.
OPEC officials said they have reached a provisional agreement to cut production. However, they said Russia would only cut production by 140,000 barrels-per-day, while Saudi Arabia has requested Moscow to cut roughly twice that volume.
Despite his doubts, the Iraqi oil minister expressed confidence an agreement is within reach.
“There is a good agreement within OPEC, but there still is a need to continue to negotiate with our partners outside of OPEC,” said Minister Thamer Ghadhban. “Personally, I am optimistic we will reach an agreement.”
OPEC officials said the cartel would cut oil production by one million barrels-per-day if Russia doesn’t agree to deepen the cut to its own output.
If Russia agrees to more cuts, however, OPEC could remove more than 1.3 million barrels-per-day of oil supply from the market.