OPEC and its allies have agreed that technical analysis of the energy market shows a need to cut oil supply from 1 million barrels per day (bpd) from October levels, Saudi Arabia's energy minister Khalid al-Falih said Monday.
Speaking at the ADIPEC oil summit in Abu Dhabi on Monday, al-Falih said: "If all things remain equal, and they almost certainly will not as things will change — it is a dynamic market — then the technical analysis we saw yesterday … tells us that there will need to be a reduction of supply from October levels approaching a million barrels."
His comments follow a meeting between some of the world's top exporters at the Joint Ministerial Monitoring Committee (JMMC) meeting on Sunday, which showed two of the world's biggest oil producers were at odds over what the OPEC and non-OPEC alliance should do next.
Saudi Arabia said shortly after the JMMC meeting that while it would not overreact to falling oil prices, it would be prepared to reduce crude output in the near-term if necessary.
This appeared to be an abrupt turnabout from OPEC's September meeting, when some of the world's leading oil producers were talking about pumping extra oil onto the market in order to help soothe intensifying supply shock fears.
Meanwhile, Russia has urged OPEC and its partners to proceed with caution, saying the group must be careful not to make any "hasty" policy decisions.
The next full OPEC meeting, when any policy decision will be voted on, is scheduled to take place in Vienna, Austria on December 6.
"The consensus is we are going to do whatever it takes to balance the market. If that means trimming supplies by a million (bpd), we will," Saudi Arabia's al-Falih said Monday.
About two dozen exporting nations began capping their output in 2017 in a bid to drain a global crude glut. The group agreed in June to restore some of that output, and producers with spare capacity have been pumping more oil since then.