Trump asks OPEC not to cut production

OPEC to consider views of PM Modi other world leaders before cutting oil production says Saudi minister

Oil prices skid amid global stock market slump, swelling US supply

The reason the United States is pressuring OPEC in general to maintain high levels of production is the United States generally would like a lower price of oil.

The committee didn't discuss specific numbers and there's still debate on the scale of the cut that's needed. Saudi Arabia has indicated it wants the Organisation of the Petroleum Exporting Countries (OPEC) and its allies to cut output by at least 1.3 million barrels per day, or 1.3% of global production.

OPEC members will meet on Thursday and hold talks with allies such as Russian Federation on Friday.

The OPEC+ coalition is desperate to shore up oil prices after a slump of more than $20 a barrel since October. The producer group's de facto leader, Saudi Arabia, has indicated a need for steep reductions in output from January but has come under pressure from US President Donald Trump to push oil prices lower.

While ministers met in OPEC's Vienna headquarters, Trump tweeted that the "world does not want to see, or need, higher oil prices!"

Oil pared gains after the meeting finished to trade at $62.25 on Wednesday afternoon.

Despite the Iranian official's remarks, Kuwait's oil ministry said on its Twitter account on Wednesday that a long-term cooperation agreement is expected to be signed between OPEC and non-OPEC countries. That will likely lead to the withdrawal of US support for the Saudi-backed forces in the war in Yemen.

Although Russia, the largest producer in OPEC+, agreed to cut in principle, the eventual size of their contribution will be key to putting together the final deal.

That has put OPEC kingpin Saudi Arabia in a delicate position - Riyadh is keen not to incur Trump's wrath as relations between the two countries become increasingly complicated in the wake of the murder of opposition journalist Jamal Khashoggi.

Riyadh under pressure from Trump not to reduce output, Moscow resists deep cuts. 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 US shale production surges.

"Nobody wants to mention a number, because it means you're committing yourself to how much you're going to cut", said Al Rumhy. "Especially the big boys - they would want to keep this cut very close to their heart".

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