Since then, the world’s top three oil producers — the United States, Russia and Saudi Arabia — have all hit new production records. Meanwhile, U.S.-China trade tensions, rising interest rates and currency weakness in emerging markets have raised concerns about a slowdown in global economic growth and oil demand.
Last month, the committee tasked with monitoring compliance to the oil alliance’s production quotas said the group may have to reverse course and begin cutting output again. On Sunday, it said the current situation “may require new strategies to balance the market.”
“The Committee reviewed current oil supply and demand fundamentals and noted that 2019 prospects point to higher supply growth than global requirements, taking into account current uncertainties,” the Joint Ministerial Monitoring Committee said.
“The Committee also noted that the dampening of global economic growth prospects, in addition to associated uncertainties, could have repercussions for global oil demand in 2019 – and could lead to widening the gap between supply and demand.”
Saudi Arabia, OPEC’s biggest producer and the world’s top crude exporter, intends to cut shipments by 500,000 barrels a day in December, Khalid al Falih, the country’s energy minister said on Sunday.
Source : CNBC