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OPEC members complaining, says Nigeria is overproducing

OPEC members complaining, says Nigeria is overproducing

Saudi Arabia's energy minister triggered the sell-off after he said a cut of 1 million barrels per day would be enough for OPEC and other major exporters.

Saudi energy minister Khalid al-Falih, OPEC's de-facto leader, has in recent weeks travelled to Libya and Nigeria to press them on the exemptions, though no public commitments have been announced. Whether to exempt Iran from making any cuts was one sticking point in the meeting, said a delegate.

Iraqi minister Thamir Abbas Al Ghadhban said deliberations would continue on Friday.

The group could eventually agree to remove about 1 million barrels a day, about 1 percent of global output, from the market, Al Rumhy said.

Oil prices have extended losses as US President Donald Trump once again tried to dampen OPEC's efforts to tackle falling oil prices amid market expectations on further output cut.

OPEC members are meeting in Vienna to discuss ways to raise global oil prices.

The move would mean reducing production by more than 1 million bpd.

"If everybody is not willing to join and contribute equally, we will wait until they are". "I think that's the fair and equitable solution", he added.

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Some energy analysts questioned whether a reduction of 1 million barrels per day is adequate to balance supply and demand in 2019, especially considering that key producers including Saudi Arabia, Russia and Iraq have been increasing output.

OPEC, along with its non-OPEC allies led by Russian Federation, earlier this year decided on increasing their respective production levels, in a bid to cap crude oil prices and bring balance to the market.

OPEC ministers reacted to Trump's intervention by telling him not to interfere.

"OPEC is an independent organization, not a part of the US Department of Energy to take orders from Washington", said Zangeneh on Wednesday.

Otherwise, he added, the U.S. official has adopted an unprofessional, naïve, and meddlesome approach.

Possibly complicating any Opec decision is the crisis around the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul in October. Given the economic sanctions being reimposed by the US, Tehran doesn't intend to join any agreement for cutting production, the country's oil minister Bijan Namdar Zanganeh said. "It is still under discussion", one delegate said.

But OPEC and its partners, who account for more than half of the world's oil output, are planning to throttle production, which could lead to rising oil prices. A cut of 1 million barrels would be the minimum to support the market, and anything less could see the price of oil fall another $10 a barrel, according to Neil Wilson, chief market analyst at Markets.com. "How OPEC communicates this to the market may be just as important as what gets done".

The cartel along with Russian Federation had subsequently increased production, with Saudi Arabia and Russian Federation reporting record production levels.

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