Saudis weighing OPEC production cuts

Saudis weighing OPEC production cuts
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Saudi Arabia and OPEC are reportedly considering cutting production without triggering price hikes,  The Wall Street Journal reported Friday. 

With the production cuts, the cartel aims to rebalance the oversupplied global oil markets, according to the Journal.

OPEC would announce plans to uphold current output goals, which were initially set in 2016. The move, according to the paper, would signify a production cut because the country overproduces oil by around 1 million barrels per day.

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“It will be still a big cut but less pronounced,” a senior Saudi oil adviser told WSJ.

The proposed cutback comes weeks after OPEC argued  for cutting oil production to increase its price, directly opposing a request from President TrumpDonald TrumpPence: Supreme Court has chance to right 'historic wrong' with abortion ruling Prosecutor says during trial that actor Jussie Smollett staged 'fake hate crime' Overnight Defense & National Security — US, Iran return to negotiating table MORE that it maintain its current levels of supply.

"Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!" Trump tweeted earlier this month.

A Saudi official told the Journal on Friday that the cut "would be more discrete," adding that it would be a "quid-pro-quo" between the Saudis and Trump.

“It is quite a political move. The last thing Saudi Arabia wants to do at the moment is to risk upsetting Trump,” a Saudi official told the paper.

Oil prices hit their low for the year Friday as U.S. production continued to grow. 

Trump on Wednesday touted the falling price of oil, calling it a “big Tax Cut for America and the World!”

He later thanked Saudi Arabia after releasing a statement reaffirming close ties with the country despite the CIA's reported conclusion that found Saudi Crown Prince Mohammed bin Salman likely ordered the assassination of Washington Post contributor Jamal Khashoggi.

Khashoggi, a Saudi national living in the U.S., was murdered after entering the Saudi Consulate in Istanbul on Oct. 2.

Trump told reporters Tuesday that oil prices were one of his primary drives for not taking action following the CIA report.

“If you want to see oil prices go to $150 a barrel ... all you have to do is break up our relationship with Saudi Arabia,” he said before leaving Washington for his Mar-a-Lago club in Florida for the Thanksgiving holiday.