Saudi and UAE say oil output cut inevitable

Abu Dhabi - Opec and allied oil-producing countries will likely need to cut crude supplies.

Oil prices advanced on Monday after Saudi Arabia unveiled plans to cut output in the face of global oversupplies, and pressed other producers to follow suit.
Opec and allied oil-producing countries will likely need to cut crude supplies, perhaps as much as one million barrels of oil a day, to rebalance the market after proposed US sanctions on Iran failed to cut Tehran's output, Saudi Arabia's Energy Minister Khalid Al Falih said.
Brent crude futures were up 70 cents at $70.88 a barrel by 1605GMT, following four sessions of losses. US crude rose 60 cents to $60.79 a barrel, the first increase after the longest stretch of daily declines since 1984.
Al Falih, who announced on Sunday the kingdom would cut production by over 500,000 barrels per day in December, said yesterday that Saudi Arabia had been giving customers "100 per cent of what they asked for". That appeared to be a veiled reference to Trump. He said Opec officials have seen analysis papers suggesting a production cut of upward of one million barrels of crude a day may be necessary to rebalance the market.
UAE Energy Minister and current Opec president Suhail Al Mazrouei similarly said "changes" likely would be necessary as the oil group meets in December in Vienna. However, he added: "We need not overreact when these things happen."