Saudi Arabia Discussing Cut In Oil Output By Up By OPEC And Allies - Sources

A worker attaches a poster of the Organization of the Petroleum Exporting Countries, OPEC, at their headquarters in Vienna, Austria, Wednesday, Nov. 29, 2017.

ABU DHABI, Nov 11 (Reuters)

Saudi Arabia is discussing a proposal to cut oil output by up to 1 million barrels per day by OPEC and its allies, two sources close to the discussions told Reuters on Sunday.

The sources said the discussions were not finalized as much depended on the reduction in Iranian exports.

“There is a general discussion about this. But the question is how much is needed to reduce by the market,” one of the sources said, speaking in Abu Dhabi where a market monitoring committee is due to be held on Sunday, attended by top exporters Saudi Arabia and Russia.

Asked by reporters in Abu Dhabi if the market is in balance, Saudi Energy Minister Khalid Al-Falih said: "We will find out. We have our meeting later.”

Al-Falih last month said there could be a need for intervention to reduce oil stockpiles after increases in recent months. The United States this month imposed sanctions curtailingIran's oil exports as part of efforts to curb Tehran's nuclear and missile programs as well as its support for proxy forces in Yemen, Syria, Lebanon and other parts of the Middle East.

(Reporting by Rania El Gamal; writing by Asma Alsharif; Editing by Maher Chmaytelli)