The Organization of the Petroleum Exporting Countries (Opec) could slash production by as much as two million barrels a day in an attempt to address sliding crude prices.

Such is the claim of Saudi oil minister Ali Al Naimi, who told the New York Times that a cut of this size was likely as he arrived in Algeria ahead of today's (December 17th) summit.

"Supply is somewhat in excess of demand. Inventories are also higher than normal. To bring things in balance there will be a cut in production of about two million barrels," he said.

Russia is also expected to cut production following the meet, in a move that will mark the first supply management between the country and Opec.

Prices of Russian crude have plummeted in tandem with Opec basket price falls, with both currently trading below the $50 a barrel level.

Meanwhile, the New York Mercantile Exchange's main contract also finished lower yesterday.


© Adfero Ltd

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