OPEC + intends to gradually resume oil production
- 03 December 2020
OPEC + (the Organization of the Petroleum Exporting Countries) and non-member countries' initiative to reduce oil production, which is not a member of the organization) discusses the issue of gradual reduction over several months, APA-Economics reports citing Bloomberg.
However, the source of Bloomberg did not disclose the terms and parameters of the reduction of restrictions.
After days of direct negotiations between the group’s heavyweights -- Russia, Saudi Arabia and the United Arab Emirates -- discussions are now focusing on proposals for gradual easing of output cuts over several months, said a delegate. It’s unclear whether the tapering would start in January, or would be delayed to later in the first quarter.
The Organization of Petroleum Exporting Countries and its allies need to hash out an agreement on supply levels for next year. Initially, talks had centered on delaying the January production hike by three months, but that option ran into obstacles on Monday amid a clash between Saudi Arabia and the UAE. Since then, delegates have been trying to find a way forward.
A gentler tapering of the production cuts could offer a potential compromise after days of tense talks, offering something to members that are concerned about the fragility of the market, and also to nations that are impatient to raise production. The Russian government, after internal talks with its own oil companies, is ready to agree to a gradual easing of supply curbs within the first quarter of 2021, said a person familiar with the discussions.