OPEC Considers Deeper Oil Cut as an Option amid Weaker 2020 Outlook

A deeper cut in oil supplies is one of the options that OPEC and its allies could consider in December, its secretary general said on Thursday as the producer group’s forecasts pointed to slower global growth and lower demand next year, Economic Times reported.

OPEC, Russia and other producers, this year have implemented a deal to cut oil output by 1.2 million barrels per day to support the market. The pact runs to March 2020 and the producers meet to set policy in early December.

“The conference will take appropriate, strong, positive decisions that will set us on the path of heightened and sustained stability for 2020,” Mohammad Barkindo told reporters at a briefing in London. “All options are open,” he said, when asked about the prospect of a deeper oil supply cut.

Oil prices have failed to gain a lasting boost from supply disruptions this year, including the attack last month on Saudi Arabian oil installations that briefly shut down more than half of .. production in the world’s top exporter.