Opec likely to cut output at December meeting

The Organization of Petroleum Exporting Countries (Opec) would likely decide to cut oil output at its December 14 meeting in Vienna, as global oil demand was expected to decline next year, Iraq’s oil minister said on Tuesday, a view in line with fellow member Iran, but one that runs counter to mainstream expectations.

Industry observers say a cut in output is unlikely to find support among the Gulf Arab Opec members while oil prices remain well above $100 a barrel.

Iran aims to persuade Opec members to return output production to levels before they were raised earlier this year in response to the Libyan crisis.

Iran, along with African producers and Venezuela, blocked a Saudi-led proposal to increase output targets at Opec’s last meeting on June 8, but Saudi Arabia and its Gulf Opec allies boosted output unilaterally afterwards.

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