Opec defies Trump with production cut

US becomes net exporter of oil for the first time in 75 years

The EIA said the US has been a net oil importer in weekly data going back to 1991 and monthly data starting in 1973.

"The commitments made under this proactive collaboration between participating countries are to be voluntarily implemented, non-binding and would not in any way affect the rights of peoples and nations to permanent sovereignty over the exploitation and management of their natural resources", he said.

Saudi Arabia, OPEC's de facto leader, has faced demands from US President Donald Trump to help the global economy by refraining from cutting oil supplies.

Oil prices between $55 to $65 per barrel are a "sweet spot for the US producer and the USA consumer", said Rob Thummel, portfolio manager at energy investment manager Tortoise Capital.

A bipartisan group of USA senators has vowed to sanction Saudi Arabia after a briefing by CIA Director Gina Haspel convinced them the Saudi crown prince ordered the killing, which took place October 2 in the Saudi Consulate in Istanbul.

Mr Trump tweeted on Wednesday: "Hopefully OPEC will be keeping oil flows as is, not restricted". In a speech past year in Houston, he insisted that his country would not surrender market share to the U.S. The kingdom, he said, supported intervening in the market to address "short-term aberrations" and not "long-term structural imbalances". From 2006 through today, net petroleum imports have trended downward as exports grew and US refiners increasingly turned to USA oil and gas producers, crowding out imported supplies.

Before Thursday's meeting, Saudi oil minister Khalid al-Falih pointedly said Washington should back off.

The OPEC deal had hung in the balance for two days - first on fears that Russian Federation would cut too little, and later on concerns that Iran, whose crude exports have been depleted by US sanctions, would receive no exemption and block the agreement. Because these countries control such a large share of the total oil market, OPEC has an incredible amount of power when it comes to regulating prices. OPEC normally meets once every six months. In turn, the USA has become the world's top fuel supplier.

But, some remain skeptical that the deal is enough to make a dramatic change in the oil market.

Amid worldwide pressure over the October 2 killing of Jamal Khashoggi in the Saudi consulate in Istanbul, it seemed that MBS needed the support of the White House too much. Thursday's inconclusive talks could end up giving the president what he wants. It also cut its 2019 view by 16.4% to $54.19.

'Iran will insist on an exemption until sanctions are removed, ' one of the OPEC sources said. The Iranian delegation fumed.

"We don't know what will Iran's sanctions picture look like". A few hours later, Al-Falih was forced to come clean.

The Saudis at first denied that the meeting, an unprecedented development ahead of an OPEC summit, ever took place.

Qatar recently said it would leave the cartel next year. Maybe without this seemingly simple act, the Friday's OPEC+ meeting would have had a complete different result.

Amid sharp differences over which way to go, the oil market continued under pressure.

The deal was announced after Novak held bilateral meetings with several counterparts, including Iranian Energy Minister Bijan Namdar Zanganeh, before the full meeting.

Iran, Libya and Venezuela were effectively given exemptions.

It was not the only fudge.

Allies of the cartel led by Russian Federation agreed to cut an additional 400,000 barrels per day. In the past, it has been surging U.S. production numbers. Output from some countries, such as Iraq, has already fallen since then, meaning that in reality they may not need to reduce further.

A further breakdown shows Saudi Arabia will reduce its production down to about 10.7 million bpd in December and to 10.2 million bpd in January.

He said the OPEC members are planned to cut their output by 800,000 barrels and non-OPEC members by 400,000 barrels, noting that it will take effect as of January 1, 2019.

Al-Falih and his OPEC colleagues claimed victory on Friday.

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