On Monday, some sources told Reuters that the Organization of Petroleum Exporting Countries and its non-member oil producer allies (OPEC+) is assessing extending oil cuts beyond January and sees a weaker compliance level of the current deal.
The sources said that the option of keeping the current level of the output cuts at 7.7 million bpd is gaining support in the group, compared to the option to ease the cut to 5.7 million bpd in January.
One source said that there is a high possibility of a three-month extension of the current level. Algeria, which currently holds OPEC’s rotating presidency, is in favor of the extension. Saudi Arabia also has stated that the OPEC+ deal could be tweaked.
On the other hand, OPEC+ is seeing a lower compliance level in the current pact, even when some countries are supposed to add some cuts into their quota in October. Russia’s cumulative overproduction was seen at 531,000 bpd and Iraq’s at 610,000 bpd, according to the source.
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Published on November 17, 2020 2:10 PM (GMT+8)Last Updated on November 17, 2020 2:10 PM (GMT+8)
