When President Trump announced his decision to pull the USA out of the Iran Nuclear Deal and reimpose sanctions on the Islamic Republic, many oil producers ramped-up production over fears of the effects the sanctions would have on trading.
The remarks came just a day prior to OPEC's meeting in Vienna, piling pressure on the Saudi-led cartel, Russian Federation and other non-member nations over potential global oil policy-making. A delegate from another country said some members believe a smaller reduction would be adequate.
OPEC and its allies are working towards cutting oil output by up to 1.5 million barrels per day but could fail to reach a deal if no compromise is found with non-OPEC Russia, the Saudi energy minister said on Thursday.
Bank of America Merrill Lynch said in its 2019 economic outlook, published on Tuesday, that "most major economies are likely to see decelerating activity", although it added that "a steady stream of monetary and fiscal stimulus measures" was expected to stem the slowdown.
Oil output from the world's biggest producers - OPEC, Russia and the United States - has increased by a 3.3 million bpd since the end of 2017, to 56.38 million bpd, meeting nearly 60 per cent of global consumption.
US President Donald Trump on Wednesday, December 5, urged OPEC members not to slash production at their upcoming meeting, saying global oil prices should remain low.
Saudi Arabia's Energy Minister Khalid Al-Falih said on Thursday reducing production by one million barrels per day would be enough for OPEC Plus.
US military planes crash while refueling off Japan
The circumstances of the mishap were under investigation and no other information was available, according to the statement. The Marine Corps tweeted that the incident occurred at about 02:00 on Thursday (17:00 GMT Wednesday).
The uncertainty over possible production cuts caused oil prices to dip on Wednesday as investors wait on a decision.
Oil prices have crashed by nearly a third since October to around $60 per barrel as Saudi Arabia, Russia and the UAE have raised output since June after Trump called for higher production to compensate for lower Iranian exports.
Russia, Saudi Arabia and the United States have been vying for the position of top crude producer in recent years. The United States is not part of any output-limiting initiative due to its anti-trust legislation and fragmented oil industry.
Iranian exports have plummeted after the United States imposed fresh sanctions on Tehran in November. Washington also gave sanctions waivers to some buyers of Iranian crude, further raising fears of an oil glut next year.
Iranian oil minister has lashed out at U.S. special representative for Iran Brian Hook over his "meddlesome" meetings with members of the Organization of Petroleum Exporting Countries in Vienna, asserting that OPEC is an independent body that does not take orders from the US.
Traders said oil prices were being weighed down by weak global financial markets, which saw stock markets tumble on Thursday.