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Trump urges against oil production cut ahead of OPEC meeting

Trump urges against oil production cut ahead of OPEC meeting

Russia President Vladimir Putin will decide on the country's contribution to global oil output.

Oil prices snapped lower Thursday morning after Saudi Arabia's energy minister said that a cut of 1 million barrels per day would be enough for OPEC and its allied oil producers. Trump wrote in a tweet ahead of the group's meeting this week to discuss possible cuts.

Novak returns to Vienna on Friday for talks between Opec and its allies, following discussions among Opec producers on Thursday.

"I'm cautiously optimistic that a deal gets done, but the devil will be in the detail", said Mohammad Darwazah, a director at Medley Global Advisers. "It is still under discussion", one delegate said.

Ardabili says any meaningful cuts in production must be made by the countries which have pumped above their quotas in breach of a 2007 deal between OPEC and non-OPEC oil producers. "We just have to see how it will be distributed", another delegate said.

US President Donald Trump has repeatedly pushed Saudi Arabia and OPEC to boost oil production in order to drive down crude prices. "The World does not want to see, or need, higher oil prices!".




A day of talks in the Austrian capital on Wednesday concluded with a panel led by Saudi Arabia and Russian Federation - the group's most powerful members - recommending an output reduction lasting six months, Oman's Oil Minister Mohammed Al Rumhy told reporters.

When President Trump announced his decision to pull the US out of the Iran Nuclear Deal and reimpose sanctions on the Islamic Republic, many oil producers ramped-up production over fears of the effects the sanctions would have on trading.

Their summit begins Thursday.

Russia, Saudi Arabia and the United States have been vying for the position of top crude producer in recent years. It is the United States where we are seeing the bulk of the increase in oil output. Washington also gave sanctions waivers to some buyers of Iranian crude, further raising fears of an oil glut next year.

The reason the United States is pressuring OPEC in general to maintain high levels of production is the United States generally would like a lower price of oil.

One issue that might complicate relations between the U.S. and OPEC is the murder of Saudi Arabian journalist Jamal Khashoggi by people linked to the government in Riyadh.