Saudi and OPEC to Continue Withholding Oil Production Beyond June?

Saudi Arabian energy minister Khalid Al-Falih has confirmed that OPEC is considering sticking with the cut in oil production beyond June 201


Things could soon turn around for crude oil prices, which have been on the decline over the past few days. Saudi Arabian energy minister Khalid Al-Falih has confirmed that OPEC is considering sticking with the cut in oil production beyond June 2019.

Since January this year, OPEC members had decided to cut oil production by 1.2 million bpd to offset a fall in oil prices. The production cut was expected to continue till June, after which the OPEC was planning to review this decision in an upcoming meeting during the same month.

However, last week, Trump announced the US government’s intentions to impose full sanctions on Iranian oil exports, fueling concerns of a dip in oil supply in world markets. Trump is also said to have asked OPEC to increase oil production to counter the potential fall in supply from Iran.

These latest statements from Saudi officials appear to defy Trump’s calls for greater oil production to curb the potential rise in oil prices. WTI crude oil prices have risen slightly to trade around around $63.72 at the time of writing.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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