The Organisation of the Petroleum Exporting Countries (Opec) will enact a supply cut at its next monthly meeting, secretary general Abdalla Salem El-Badri has announced.

Speaking to Iran's Energy and Oil Information Network, he said that the cartel is ready to limit production by a further one million barrels of oil a day, which he claimed was a "good amount".

The group held off from making a cut at its monthly meeting in Cairo last weekend. At an emergency meeting held in Vienna in October, the cartel ruled on a 1.5 million barrels a day restriction.

Reports indicate that it was reluctant to enforce an additional cut when this last ruling had yet be fully implemented.

Following the announcement, oil traded below $50 yesterday, with Forbes noting that major energy firms were taken down with the commodity, which slid more than ten per cent.

Speaking to Iran's Press TV, the country's oil minister Gholam Hossein Nozari said that the world is currently oversupplied by some two million barrels a day.

© Adfero Ltd

More Essential News