Connect with us

Hi, what are you looking for?


OPEC to cut oil output by 500,000 bpd

VIENNA, September 9 – OPEC will agree to cut its real output by up to 500,000 barrels per day at its meeting on Tuesday while leaving its official production policy unchanged, energy consultancy PFC Energy said, citing unnamed sources.

"PFC Energy has learned that OPEC has in principle agreed to trim production from current levels above official output targets," said the respected Washington-based group.

"PFC Energy understands that a cut in actual production could be in the order of 500 (thousand barrels per day), but that the communique text will likely focus on the need to abide by agreed-upon production targets rather than on numerical targets for cuts," it added.

Many analysts expected the 13-nation group to agree to trim its output informally before waiting until later in the year to alter its official output target.

The trimming would be achieved by members, mainly powerhouse Saudi Arabia, agreeing to cut excess production above their OPEC quota, which would remove oil from the market but not amount to a formal change in policy.

PFC said the group might meet again in November, a month before the next scheduled gathering in December.

At present, the Organization of Petroleum Exporting Countries (OPEC) is believed to be producing about a million barrels per day (bpd) more than its official ceiling of 29.67 million bpd, with Saudi Arabia accounting for most of the excess.

Iran has led efforts to secure a clampdown on production above OPEC quotas.

Saudi Arabia has been producing record amounts of oil, around 9.6 million bpd in July, while its quota is for only 8.94.

Advertisement. Scroll to continue reading.
Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...