What Happened: OPEC and its allies should reduce their oil production by 1 million barrels per day, Saudi Energy Minister Khalid al-Falih has suggested, while calling on all affected countries to equally cut production, Bloomberg reported Dec. 6. The countries have yet to reach a consensus, al-Falih added.
Why It Matters: This suggested reduction is smaller than previous Saudi proposals of a production cut of 1.3 million or 1.4 million barrels per day. However, it remains unclear which baseline production levels al-Falih was suggesting for reductions. Oman’s oil and gas minister, Mohammed Hamad al-Rumhy, said Dec. 5 that reference production levels would be from September or October.
Background: OPEC's Joint Ministerial Monitoring Committee recommended some production cut at its Dec. 5 meeting. Russian Energy Minister Alexander Novak has flown back to Moscow to discuss possible Russian oil production cuts with President Vladimir Putin. OPEC will hold a meeting with non-OPEC members on Dec. 7.
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