“The Saudi minister has declared he is producing 8,399 (million barrels per day).” Khelil reiterated that Opec ministers were in agreement on the need to cut output at the Wednesday meeting. The first ministers are expected to arrive in Oran later today.
He said there was an oversupply of 400 million barrels in the oil market. OPEC is expected to make a cut of 1-2 million barrels per day, and Khelil was asked how long he thought it would take for a reduction to clear the overhang. “If we decide on one (million bpd cut) it will take 400 days, if we decide two it will take 200 days,” he said. Khelil said he expected global oil demand to drop by 200,000 bpd in the first quarter of next year and by another 1,2 million bpd in the second, but then to pick up.