The oil market looks poised to swing into oversupply next year as growing global crude output swamps shaky demand, a committee of allied producer nations said on Sunday.
The committee of several OPEC members and other crude exporters says a larger group of roughly two dozen nations may have to launch a fresh round of output cuts in order to keep the oil market balanced. The announcement comes as rising supply and a weaker outlook for demand have contributed to a sharp pullback in oil prices that has plunged U.S. crude into a bear market.
The committee’s communique sets up a potential agreement to throttle back production when the entire group meets next month.
