Saudi voluntary oil cut to help with low demand in first quarter, OPEC chief says

FILE PHOTO: OPEC logo is pictured ahead of an informal meeting between members of the Organization of the Petroleum Exporting Countries (OPEC) in Algiers, Algeria September 28, 2016. REUTERS/Ramzi Boudina

LONDON (Reuters) - Saudi Arabia’s voluntary oil production cut is set to help the oil market navigate through seasonally low oil demand during the first quarter, OPEC’s secretary general told an industry event on Wednesday.

Saudi Arabia, the defacto leader of the Organization of the Petroleum Exporting Countries (OPEC), surprised the market earlier this month when it pledged to cut production by a further 1 million barrels per day in February and March.

Mohammad Barkindo, who spoke to the Gulf Intelligence online forum, said oil inventories globally - in both OECD and non-OECD countries- are “very high”.

Reporting by Ahmad Ghaddar and Shadia Nasralla. Editing by Jane Merriman