Opec considers cutting 2019 oil output

The Organization of Petroleum Exporting Countries said on Thursday it has reviewed how much oil should be produced in 2019 to not slip into oversupply and prevent the prices from falling.

The rise in inventories and economic uncertainties these past weeks have caused oil producers who agreed to relax supply curbs in June to consider changing course, according to the joint ministerial monitoring committee’s findings released on Thursday .

"The committee expressed overall satisfaction with the collective performance of member countries in the month of September," the statement said.

"The committee, however, expressed concerns about rising inventories in recent weeks and also noted looming macroeconomic uncertainties which may require changing course."

Brent crude oil has lost about $10 a barrel since hitting a four-year high of $86.74 in early October.

This decision could receive criticism from the US President Donald Trump who has already complained in the past to the OPEC for not supplying enough oil.

The OPEC and its allies will hold their next policy meeting in December.

Earlier on Thursday, top exporter Saudi Arabia said the oil market could be oversupplied in the fourth quarter of 2018 as inventories rise and demand falls. It also said Saudi Arabia would “mirror” such changes in production.

"We are of the view that the market in the fourth quarter could be shifting towards an oversupply situation as evidenced by rising inventories over the past few weeks," Saudi OPEC governor Adeeb Al-Aama told Reuters.

“We want to be watchful not to over-correct and cause a substantial inventory build”, he added.

He also said that oil demand reponds to macroeconomic factors but Saudi Arabia does not push oil to the market but responds to its customers’ needs.

“Saudi Arabia produces only what its customers ask for, not more. We saw strong demand for our crudes in the third quarter and we have increased our production accordingly,” he said.