Two of OPEC’s Biggest Members Won’t Immediately Reduce Oil Production

While oil-producing nations would like higher prices, there’s “no room” for them to achieve that by lowering supply, Kuwait’s oil minister told the official Kuwait News Agency yesterday. Saudi Arabia, which pumped almost one-third of the group’s oil last month, won’t alter its supplies much between now and the end of the year, a person familiar with its oil policy said Oct. 3.

“Saudi action is what matters most and we have yet to see anything,” Katherine Spector, a commodities strategist at CIBC World Markets Inc. in New York, said yesterday by phone. “There’s not a lot the Venezuelans can do, either by action or rhetoric, that will change things.”

OPEC’s largest Persian Gulf producers, including Saudi Arabia, Iraq and Iran, are offering the biggest discounts to buyers in Asia since at least 2009 to maintain market share amid a global glut that has sent oil into a bear market. Venezuelan President Nicolas Maduro gave instructions to ask for an extraordinary meeting, the country’s foreign ministry said in a post on its Twitter account on Oct. 10.

Bloomberg

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