(Reuters) – OPEC should cut its oil output by at least 500,000 barrels per day (bpd), a Libyan oil official said, to tackle oversupply and support prices that have slid to a four-year low.
The 12-member Organization of the Petroleum Exporting Countries meets on Nov. 27 to consider adjusting its output target of 30 million barrels per day for the first half of 2015 and so far only a minority of members have called for an output cut.
“I would like OPEC to cut production of at least half a million (bpd) as all studies indicate the need for that even before the fall in prices,” Samir Kamal, Libya’s OPEC governor and head of planning at the Libyan oil ministry, told Reuters. “The oversupply is about a million.”
Kamal said he was not speaking on behalf of the Libyan government. Libya is struggling with two competing governments, each with its oil minister. Neither minister has commented on the OPEC meeting.
OPEC’s meeting is looking like one of its most important in years. Oil slid to below $83 barrel last week from $115 in June on abundant supply and concern of weakening demand, below the budgetary pain thresholds of many OPEC countries…