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OPEC Cuts Oil Supply Steeply but Sees Growing 2019 Headwinds

Posted February 12, 2019

Under Economic Issues, International Trade Issues

(Alex Lawler – Reuters)

OPEC said on Tuesday it had cut oil production steeply under a global supply deal, although it flagged headwinds confronting its efforts to prevent a glut this year including weaker demand and higher rival output.

In a monthly report, OPEC said its oil output fell almost 800,000 barrels per day in January to 30.81 million bpd. That is still slightly more than the demand OPEC expects for its crude on average in 2019.

Worried by a drop in oil prices and rising supplies, the Organization of the Petroleum Exporting Countries and its allies including Russia agreed in December to make supply cuts. Under the deal, OPEC is lowering output by 800,000 bpd from Jan. 1. Click here to read more.