Oil

Oil: Glimmer of hope for a cut in OPEC supplies in 2016

According to a report from Energy Intelligence, OPEC leader Saudi Arabia, the world’s largest oil exporter, may consider a reduction in OPEC production of 1m bpd in 2016.

However, this would only materialise if certain conditions are met, namely Iran and non-OPEC producers such as Russia, Mexico, Oman as well as Kazakhstan trimming their output. Iraq was also singled out to cap production at current levels.

The report also highlighted that the plan to reduce OPEC oil supplies will not be agreed during the cartel’s upcoming meeting in Vienna this Fri.

Nevertheless, oil traders cheered the news as WTI and Brent crude prices jumped 1.4% and 1.5% to US$40.48 and US$43.13 respectively, at the time of writing.