President Trump pressuring OPEC to increase oil production ahead of crucial meeting

Oil prices skid amid global stock market slump, swelling US supply

Oil prices skid amid global stock market slump, swelling US supply

Saudi Arabia seeking to persuade Russian Federation on Wednesday to cut oil production substantially with OPEC next year. The United States is not part of any output-limiting initiative due to its anti-trust legislation and fragmented oil industry.

The committee didn't discuss specific numbers and there's still debate on the scale of the cut that's needed.

The Organization of the Petroleum Exporting Countries and its allies continued to haggle over the size of potential crude-production cuts in Vienna on Wednesday.

OPEC members will meet on Thursday and hold talks with allies such as Russian Federation on Friday.

The move has frustrated many producers, prompting Qatar to announce that it was quitting OPEC to focus on gas in a swipe at Saudi Arabia.

"Hopefully OPEC will be keeping oil flows as is, not restricted". However, he has come under pressure from U.S. President Donald Trump to push oil prices even lower, and there is a political tie-in there which may force the hand of the Saudi's to comply with such requests, and thus the markets figure that the cartel's hands are tied.

While ministers met in OPEC's Vienna headquarters, Trump tweeted that the "world does not want to see, or need, higher oil prices!" Oil markets rose on Wednesday ahead of the meeting.

"There is little disagreement among OPEC members over the need to cut, but there is not yet consensus over how much", said Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd. That will likely lead to the withdrawal of US support for the Saudi-backed forces in the war in Yemen.

The meetings are expected to be focused on a deal to reduce output, but Iran's OPEC governor Hossein Kazempour Ardabili believes an agreement is unlikely to be reached.

Brian Hook, the senior US official overseeing sanctions against Iran, met with Saudi Energy Minister Khalid Al-Falih on Wednesday morning in the Austrian capital, according to a person familiar with the matter.

The last time the OPEC+ group agreed to curtail output, in late 2016, it settled on a combined 1.8 million-barrel-a-day reduction. In preparatory meetings ahead of this week's summit, delegates have said a cut of as much as 1.3 million barrels a day next year is needed as demand growth slows and US shale production surges. "It won't be called a cut but will effectively mean a cut, which will also be hard to quantify", McNally said.