Saudi Arabia is considering the cancellation of plans for the Organization of the Petroleum Exporting Countries to raise oil production early next year, APA reports citing Marketwatch.
They cited the rise in COVID-19 cases in many parts of the world, as well as the expected return of Libyan crude oil to the world market for rethinking the plan, which calls for a gradual increase in output, as OPEC and its allies, collectively known as OPEC+, ease production curbs. The Saudi advisers said Riyadh is considering postponing the move until the end of the first quarter. "The market can't take another two million barrels a day," one adviser said, according to The WSJ report. OPEC+ had agreed to cut overall oil output by 9.7 million barrels per day starting in May. The group tapered the cuts starting in August to 7.7 million barrels per day. OPEC's next official meetings will be held on Nov. 30 and Dec. 1. In Thursday dealings, November West Texas Intermediate crude CLX20, -0.24% rose $1.30, or 3.3%, to $41.25 a barrel and December Brent oil BRNZ20, -0.25% traded at $43.34 a barrel, up $1.35, or 3.2%.