OPEC and Russia have agreed to modestly increase oil production by 500,000 barrels per day from the first of next January
According to Arabiyanet, the parties did not succeed in reaching a compromise on a broader, longer-term policy for the remainder of the year.
The increase means that the Organization of the Petroleum Exporting Countries and Russia, within the framework of OPEC +, will cut production by 7.2 million barrels per day, equivalent to 7%, of global demand from January / January, compared with current cuts of 7.7 million barrels per day.
The cuts aim to address weak oil demand in the midst of a second wave of the Coronavirus.
It was previously expected that OPEC + cuts would extend the list until at least March.
But after hopes for a speedy approval of vaccines to prevent the virus resulted in a rise in oil prices at the end of November, many producers began to doubt the need to maintain This tightening in oil policy.
OPEC + sources said that Russia, Iraq, Nigeria and the UAE have expressed a desire to supply the market with more oil in 2021.
monthly meeting
Four OPEC + sources said that the group will hold a monthly meeting to decide on production policies after January, ruling out that any monthly increase exceeds 500 thousand barrels per day.
OPEC + must strike a delicate balance between pushing prices up enough to help member states' budgets, but not in excess to raise competing US production. US shale oil production tends to rise when prices exceed $ 50 a barrel.
monthly OPEC + meetings will lead to more severe price fluctuations and complications that US oil producers will face in hedging policy.
There has been no significant change in crude prices after the OPEC + decision to remain at around $ 48 a barrel.
less winter order
In a related context, the Russian Deputy Prime Minister, Alexander Novak, said at the OPEC + meeting today, Thursday, that resolving the outcome of the US elections is a positive factor for ...
