The Organisation of Petroleum Exporting Countries (OPEC) and its allies are likely to keep oil-production policy steady when they meet in December as current prices near $70 a barrel suit all members, the Minister of State for Petroleum, Dr. Emmanuel Kachikwu, has said.

“I’d be surprised to see anything dramatic” when the coalition gathers, Kachikwu said in an interview in London. “We are likely to push the can forward” as “$70 is the comfort level, for us and for everybody.” Mixed signals from the OPEC and its partners have roiled markets over the past week. While a committee representing the alliance signaled late last week that it could restrain output in 2019, and Saudi Arabia warned of a potential renewed surplus, Russia said it could increase production beyond record levels amid risks of a shortage.

New supply from around the world, from United States shale oil to projects in Nigeria itself, could swell global output by between 1 million and 2 million barrels a day next year, Kachikwu said. That could force the OPEC and its allies to consider restraining supplies again, he said. OPEC will meet on December 6 in Vienna and hold a follow-up meeting with its partners outside the organisation the next day.

Source: THIS DAY