Saudi Arabia could propose 2016 output cut with conditions, report says

Saudi Arabia may table a proposal for an eventual cut to oil production if non-OPEC members and Iran participate.

The proposed 1m barrel a day reduction in OPEC's oil output might take place in 2016, although it was not expected to be agreed at Friday's meeting of the Organization of Petroleum Exporting Countries, according to a report from Energy Intelligence's Oil Daily publication cited by Bloomberg.

EI cited a group delegate it didn’t identify.

Russia, Mexico, Oman and Kazakhstan were among some of the non-OPEC producers referenced in the report.

An Iraqui freeze on production or a cut alongside OPEC would be another prerequisite for such a decision.

As of 09:53 front month Brent crude futures were rebounding 1.71% to reach $43.23 per barrel in London trading after spilling lower in the previous session.

On Wednesday, the Energy Information Administration, the US Department of Energy's statistical arm, reported an unexpected build in US commercial crude oil inventories for the week ending on 27 November.

Alongside a move lower in metals prices - and with the US dollar index near ten year highs - that drove the Bloomberg Commodity Index to a 16-year low.

Brent futures ended the Wednesday session 4.39% lower at $42.49 and those for West Texas Intermediate down by 4.56% after dipping below $40 at one point in the day - for the first time since August.