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OPEC talks over deeper production cuts drag on

VIENNA — The countries that make up the OPEC oil-producing cartel talked into the night Thursday over possible deep cuts to production that would support the price of fuel around the world.

An OPEC spokesman told waiting journalists at 10 p.m. that an expected news conference would not take place and that a written statement might come later.

The group was expected to prolong production cuts that they agreed on for the past three years, though Russia’s energy minister said even deeper cuts were under discussion. The price of crude has been capped in recent years by a resurgence in supplies from countries outside OPEC, particularly the United States.

As it stands, OPEC nations have agreed to cut production by 1.2 million barrels per day through March.

Russian Energy Minister Alexander Novak, whose country is not part of OPEC but joins part of the meeting to coordinate production, said Thursday that the group was discussing a further cut of 500,000 barrels a day “in order to safely go through the seasonal demand trough in the first quarter 2020.”

“Of course this is only a recommendation which will be made to the OPEC conference and to the ministerial meeting tomorrow, because those are the only two formations which can actually make a decision,” Novak said. “But they will be reviewing these recommendations.”

Saudi Aramco’s stock market debut put Saudi Arabia in a precarious position as it bets on what volume of oil production will hit a sweet spot for prices, with the added pressure of considering the interests of its shareholders. The nation is already bearing the burden of the largest share of OPEC’s production cuts.

But some nations such as Iraq have been ignoring the agreement and producing more than their allotted amount.

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