Wednesday, 27 February 2019

OPEC, allies to maintain oil output cuts despite Trump

OPEC and its allies will stick with their agreement to cut oil supply, pushing for more adherence despite a demand by U.S. President Donald Trump that the producer group ease its efforts to boost crude prices, a Gulf OPEC source said on Tuesday.

Based on current market data, the so-called OPEC+ group is "likely to continue with the production cuts until the end of the year", the source told Reuters.

The OPEC+ alliance will meet in April to decide its output policy.

Trump, in the latest in a series of tweets about oil prices since April 2018, wrote on Monday: "Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike - fragile!"

Following the tweet, oil prices registered their largest daily percentage drop this year, with Brent crude losing 3.5 percent on Monday. Brent edged up on Tuesday.

The source said OPEC+ would continue the supply-cut agreement to balance the market until "they see inventories going down from their current level" to their five-year average.

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