Saudi Arabia dismissed Friday news reports that the kingdom would propose lowering oil production ahead of an OPEC meeting, a well-informed source said.

A report issued by the Energy intelligence bulletin, citing a source within OPEC, had suggested that Saudi Arabia would propose a deal to cut OPEC production by a million barrels a day in 2016 to re-balance the market.

The report said the proposal would urge two OPEC members, namely Iraq and Iran, along with other non OPEC members such as Russia, Mexico, Oman, and Kazakhstan to join in output cuts.

“Such news is baseless,” the Saudi source said.

OPEC meets on Friday to decide on whether to cut its oil production faced with an abundance of crude that has sent prices crashing.

Despite oil prices plunging by more than 60 percent in 18 months, OPEC kingpin Saudi Arabia and the cartel's other Gulf state members are defying calls to cut output - in a year-long strategy of attempting to preserve market share and fend off competition from non-OPEC and world leading producers Russia and the United States.