OPEC+ to discuss extending oil cuts or gradually raising output
- 30 November 2020
OPEC+ members will consider whether to extend existing oil cuts for three to four months or to gradually increase output from January during their two days of talks that start on Monday, OPEC+ sources said, APA reports citing Reuters.
Officials from the Organization of the Petroleum Exporting Countries, Russia and others, a group known as OPEC+, held an initial round of talks on Sunday before formal discussions began but have yet to agree output policy for 2021.
OPEC+ had been due to ease its existing production cuts by 2 million barrels per day (bpd) from January 2021, but a second coronavirus wave has reduced demand for fuel around the world, prompting a rethink among members of the group.
Preliminary consultations on Sunday between the key ministers, including from Saudi Arabia and Russia, did not reached a compromise on the duration of a rollover.
OPEC+ is now considering extending the existing cuts of 7.7 million bpd, about 8% of global demand, into the first months of 2021, a position supported by OPEC’s de-facto leader Saudi Arabia and other major producers in the group, sources said.