OPEC to continue output cut as oil price fall: Khelil

OPEC President Chakib Khelil said Friday the group will continue cutting production until prices get stable while the price of New York oil dropped under 34 dollars per barrel.

• “We will continue this reduction until prices stabilise,” Khelil said in a news conference on the sidelines of a meeting of producer and consumer countries in London.
• US crude oil slumped to 33.44 dollars a barrel marking the lowest fall since April 2, 2004.
• Asked if he thought OPEC’s Wednesday cut of 2.2 million barrels per day was enough to restore the market to balance, Khelil told Reuters: “I think so — its 2.2, that’s plenty.
• “It will have an effect as soon as the market will see the member countries will be applying all the cuts from January 1.
• “I think things will improve as we go from here.”
• Saudi Oil Minister Ali Ibrahim al-Nuaimi said production levels alone did not drive oil prices believing non-fundamental factors continue to impact oil prices.
• At the time of record highs, issues such as “the speculative investments into commodities” had fuelled high prices, he said.