OPEC+ may consider ‘deeper cuts’ as oil prices drop

OPEC and non-OPEC producers will consider deeper cuts if a 1.2 million barrels-a-day reduction isn’t enough to balance the market, Bloomberg reported on Sunday, citing UAE Energy Minister Suhail Al-Mazrouei.

"Extending the agreement signed in early December on oil output cuts will not be a problem and producers will do as the market demands," he told a news conference in Kuwait.

On Friday, oil prices fell to another 14-month low amid a possible slowdown in the US economy. Brent crude dropped over four percent to breach the $55 per barrel mark, hitting a low of $54.82.

Meanwhile, October’s production levels will be the reference point for oil output cuts for most OPEC and non-OPEC producers, Reuters reported Al-Mazrouei as saying.

Earlier this month, Saudi Arabia’s Ministry of Energy said in a tweet that the six-month long output cut agreement, which will come into effect from January 2019, will be reviewed in April.

The 15-member OPEC cartel agreed to trim its output by 800,000 barrels per day (bpd), while Russia and the allied producers will contribute a 400,000 bpd reduction.