x Abu Dhabi, UAESunday 23 July 2017

Opec head predicts output cuts

The head of Opec says financial markets should brace for a "surprise" decision on oil output cuts later this month.

Oil prices settled at four-year lows yesterday at $40.81 per barrel.
Oil prices settled at four-year lows yesterday at $40.81 per barrel.

ALGIERS // The head of Opec says financial markets should brace for a "surprise" decision on oil output cuts by the cartel during its summit later this month. Chakib Khelil, who is also Algeria's energy minister, told the Associated Press that "a consensus has formed for a significant reduction of production levels" by the 14-member Organization of Petroleum Exporting Countries (Opec). Opec members are to announce their decision during a summit in Oran, Algeria, on Dec. 17. Markets are expecting an output reduction but Mr Khelil suggested today that it could be deeper than expected. Mr Khelil said the best way to boost oil rates is to "surprise" markets. Oil prices settled at four-year lows yesterday at $40.81 per barrel. * AP