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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