OPEC is likely to cut oil production Friday by 1 million barrels a day in a bid to keep oil prices above $70 a barrel, Saudi-owned newspaper Al-Hayat reported Friday.
Citing an unnamed source in the Organization of Petroleum Exporting Countries, the newspaper reported that OPEC doesn't need a more substantial cut in output now but might work on a cut that takes into account the expected global recession in the first and second quarters of next year.
"Demand for oil will decline in the next six months due the global recession that hit major consuming nations, the United States in particular," the paper quoted the official as saying. "Sources confirmed that U.S refineries are averse to buying surplus oil due to the liquidity crunch after banks became more strict in granting loans."
Eager to rein in what it terms an alarming slide in oil prices, OPEC is likely to cut production at an emergency meeting on Friday there are still questions over how deep the decrease should be. Analysts anticipate a production cut of 1 to 1.5 million barrels a day.