Saudi Oil Min: "Very High Probability" OPEC to Cut Again

Saudi Arabian Oil Minister Ali Naimi reiterated Tuesday that there is a "very high probability" that the Organization of Petroleum Exporting Countries will take further steps to rebalance the market beyond the 4% production cut agreed in late October.

Naimi said: "Our aim is to balance the market and we have taken measures in the last meeting in Doha," where OPEC ministers agreed to cut production by 1.2 million barrels a day to stem a rapid slide in oil prices.

However, there has been little sign in the physical crude markets of anywhere near that volume actually being cut.

Gulf oil ministers will meet in the U.A.E. capital Wednesday to discuss oil issues and technical cooperation between national oil companies.

The GCC comprises OPEC members Saudi Arabia, Kuwait, Qatar and the U.A.E., as well as producers Oman and Bahrain.

Ministers will hold talks on a study to establish a Center for Strategic Studies and Energy Research and a common law for mining among member states.

The meeting will also discuss developments on climate change, and the results of dialogue with global economic groups and other oil-producing countries.

Naimi said the oil ministers and their deputies were meeting to create an energy agenda ahead of a full GCC summit in December.

"It's a long agenda. They're discussing nine items and climate change could be one of those items," Naimi said.