Saudi Arabia, Kuwait, the United Arab Emirates and Qatar would consider “rapidly” reducing output by as much as 1 million barrels a day to 1.5 million should Brent, the benchmark for more than half the world’s oil, fall to $90 a barrel, Emad Mostaque, a strategist at the London-based investment bank, said in an interview today in Dubai. The four Gulf Cooperation Council members wouldn’t wait for OPEC agreement, he said.
“I see big headwinds in most places as economic data continues to disappoint,” Mostaque said. “GCC producers have various budget breakevens but $90 is an important psychological level.”
Brent has lost almost 8 percent this year, trading today at $102 a barrel on the London-based ICE Futures Europe exchange, as economic stagnation in Europe, slowing expansion in China and threats to recovery in the U.S. constrain fuel consumption. OPEC pledged at its May 31 meeting to curb excess production.
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