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Saudi Minister ‘Very Optimistic’ about Oil Market

Saudi Minister ‘Very Optimistic’  about Oil Market

ABU DHABI - Saudi Energy Minister Khalid al-Falih said on Tuesday he was “very optimistic” about the outlook for the oil market after producers cut output to support flagging prices.
Members of the OPEC cartel and allies including Russia decided last month to reduce output by 1.2 million barrels per day (bpd) after prices fell by more than 40 percent in just a few weeks in late 2018.
The price of benchmark Brent crude, which briefly dipped below $50 a barrel in December, rebounded partially to above $60 a barrel following the production cuts which took effect on January 1.
The market has remained volatile with prices fluctuating sharply even after OPEC kingpin Saudi Arabia announced last week it will gradually cut output by 800,000 bpd in January and a further 100,000 bpd next month.
“I am confident that the impact of the decision we took to cut output by 1.2 million bpd ... will be very strong,” Falih told reporters on the sidelines of the Abu Dhabi Sustainability Week conference. “But there is always a lagtime between the (decision to) cut production and the impact reaching the market,” he said.  (AFP)