Cut in oil output by Gulf nations to lift prices

At Riyadh, the UAE and Kuwait both agreed to slash production by 75,000 BPD (barrels per day) each while Oman will cut production by 20,000 BPD.

Saudi Arabia, the world’s largest oil exporter, which has already pledged 225,000 BPD cut early this month in Amsterdam did not announce any further scaling down on production. Qatar had also agreed to dip production by 20,000 BPD, reports said adding the GCC countries have thus totalled a cut of 415,000 BPD.

At the Amsterdam meeting of major oil producers, Venezuela also agreed to reduce productionby 125,000 BPD and Mexico by 100,000 BPD.

Both Saudi Arabia and Kuwait face budget deficits and their woes are accentuated by low oil prices. Bahrain, a marginal oil producer and member of GCC has not offered any cuts.

Iran has joined hands with the oil producers in the region which holds the world’s 65 per cent of oil reserves saying it was willing to cut back production by more than 100,000 BPD.