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The source was responding to a report by Russia's TASS news
agency that Russia and Saudi Arabia had started bilateral
discussions over possible curbs to output in 2019.
Saudi-led OPEC and its allies including Russia decided in June
to relax output curbs in place since 2017, after pressure from
U.S. President Donald Trump to reduce oil prices and make up for
supply losses from Iran.
A second delegate from the Organization of the Petroleum
Exporting Countries, asked whether discussions pointed to a
return to supply cuts in 2019, said: "Certainly not the other
way around."
Oil prices have come under downward pressure from rising
supplies, even though Iranian exports are expected to fall
because of new U.S. sanctions. Forecasts of a 2019 supply
surplus and slowing demand have also dented the market.
Brent crude <LCOc1> had dropped from a four-year high in October
above $86 a barrel to $71 on Tuesday. Prices rallied back above
$73 on Wednesday, supported by the TASS report.
A ministerial committee of some OPEC members and allies meets on
Sunday in Abu Dhabi to discuss the market and outlook for 2019.
This group, called the JMMC, could make a recommendation on 2019
output policy to the next decision-making meeting of OPEC and
non-OPEC oil ministers, a third OPEC source said. That meeting
takes place on Dec. 6-7 in Vienna.
"Any serious discussion will be toward the December meeting,"
this source said.
(Editing by Dale Hudson)
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