OPEC Looking to Cut Daily Oil Output

OPEC needs to reduce crude output by at least 500,000 barrels a day, Libya’s governor to the group said, the first time since prices plunged into a bear market that a representative from a member nation has suggested how much production should be cut.

Oil markets are oversupplied by about 1 million barrels a day, Samir Kamal, Libya’s OPEC governor, said by e-mail today. His comments reflected personal views, not the official Libyan position, he said. Libya shouldn’t be expected to reduce its own oil output because the country is still struggling to restore production that has been disrupted for more than a year by political conflict, he said.

“I would like OPEC to cut production by at least half a million, as all studies indicate the need for that” because of the increasing production from outside the Organization of Petroleum Exporting Countries, he said.

Bloomberg

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