Saudi Arabia has said it will cut oil output by at least 486,000 barrels per day (bpd) as it implements OPEC’s agreement to reduce output.
According to a source, the Saudi Aramco has started talks with customers around the world on possible cuts of 3% to 7% from next month.
It comes after OPEC member countries agreed in November to cuts that will take effect in the first half of this year.
OPEC agreed to output cuts as of January 1 that would bring production to 32.50 million bpd, in the first such decision since 2008. In December, no production target was in effect.
According to reports, OPEC output fell by 200,000 barrels per day last month, led by Nigeria and Saudi Arabia.