IEA's Birol appeals for "common sense" as oil producers weigh supply cut
(Adds quotes, background)
BRATISLAVA, Nov 19 (Reuters) - Oil supply cuts by key
producers could have negative implications for markets, the head
of the International Energy Agency said on Monday, appealing to
market players to use "common sense".
IEA chief Fatih Birol, speaking at a news conference with
central European energy ministers in Bratislava, said markets
were currently well supplied but spare capacity in Saudi Arabia
was thin and cuts by key players could tighten markets.
"Currently markets are very well supplied but we should not
forget that spare capacity in Saudi Arabia is very thin,
therefore cutting the production significantly today by key oil
producers may have some negative implications for the markets
and further tightening the markets," he said.
"My appeal to all producers and consumers across the world
is to have common sense in these difficult days."
The Organization of the Petroleum Exporting Countries, led
by Saudi Arabia, is pushing for the group and its partners to
reduce output by 1 million to 1.4 million barrels per day to
prevent a build-up of unused fuel.
Oil rose for a fourth session in a row on Monday, buoyed by
the prospect that Saudi Arabia will push OPEC and maybe Russia
to cut supply towards the end of this year.
Russian Energy Minister Alexander Novak said on Monday that
Russia, which is not an OPEC member, planned to sign a
partnership agreement with the group, and that details would be
discussed at OPEC's Dec. 6 meeting in Vienna.
(Reporting by Tatiana Jancarikova; Writing by Jason Hovet;
Editing by Adrian Croft)
First Published: 2018-11-19 14:39:42
Updated 2018-11-19 15:01:26
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