If ongoing discussion on proposed oil supply cut among members of the Organization of Petroleum Exporting Countries, OPEC and its partners produces results then up to 1.4 million barrels per day (bpd), may be cut in 2019.
Three sources familiar with the issue said the idea is to avert an oversupply that would weaken prices.
Worried by a drop in oil prices and rising supplies, the OPEC, is talking again of reducing production just months after increasing it, as the group meets on December 6 to set policy for 2019.
A supply cut of up to 1.4 million bpd was one of the options discussed by energy ministers from Saudi Arabia, non-OPEC Russia and other nations at a meeting in Abu Dhabi on Sunday, the sources said.
“I believe a cut of 1.4 million bpd is more reasonable than above it or below it,” one of the sources, who declined to be identified by name as the talks are confidential, said.
OPEC member Iran, as well as Russia, would need to be brought on board for the new plan, the sources added. One source said Iran does not want to have a production target in a new agreement as it is facing lower exports due to U.S. sanctions.
Together with Russia and other non-Opec producers, Opec had agreed in June to boost supply after pressure from U.S. President Donald Trump to lower prices, partially unwinding output cuts.