Breaking News
Investing Pro 0
Free Webinar - The Role of Psychology in Trading - Thursday, December 8, 2022 | 04:00PM EST Enroll Now

OPEC+ weighs oil cuts extension, sees weaker compliance

Commodities Nov 16, 2020 12:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The OPEC logo pictured ahead of an informal meeting between members of the Organization of the Petroleum Exporting Countries (OPEC) in Algiers

By Rania El Gamal, Alex Lawler and Ahmad Ghaddar

DUBAI/LONDON (Reuters) - OPEC and allies including Russia are leaning towards postponement of a planned January increase to oil output by at least three months to support prices as the COVID-19 pandemic continues its second wave, sources told Reuters on Monday.

The OPEC+ group of producers was due to raise output by 2 million barrels per day (bpd) in January - about 2% of global consumption - as part of a steady easing of record supply cuts implemented this year.

But with demand for fuel weakening, OPEC+ has been considering delaying the increase or even making further cuts.

An option gaining support among OPEC+ nations to keep the existing curbs of 7.7 million bpd for a further three to six months, OPEC+ sources said, rather than tapering the cut to 5.7 million bpd in January.

"A three-month extension is highly likely," said one OPEC+ source.

Two OPEC+ committees are meeting virtually this week. The Joint Technical Committee (JTC) held its meeting on Monday and the Joint Ministerial Monitoring Committee, which can recommend policy steps to OPEC+, meets on Tuesday.

OPEC+ will have a full meeting on Nov. 30 and Dec. 1 to decide output policy for next year.

Algeria, currently holder of OPEC's rotating presidency, has backed an extension of existing cuts and top exporter Saudi Arabia has said the OPEC+ deal could be "tweaked".

Monday's JTC meeting also discussed figures showing OPEC+ compliance with pledged curbs was 96% in October - less than previously thought - after inclusion of compensatory cuts for past excess production by some countries, an OPEC+ source said.

The figures suggested little month-on-month progress in ensuring countries that overproduced in previous months made extra cuts now. Russia's cumulative overproduction was seen at 531,000 bpd and Iraq's at 610,000 bpd, the source said.

Oil nonetheless was trading above $44 a barrel on Monday, finding support from hopes of a COVID-19 vaccine and for further action by OPEC+.

OPEC+ weighs oil cuts extension, sees weaker compliance
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Alan Rice
Alan Rice Nov 16, 2020 6:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Humans: the chief fungus of earth??
David Bennett
David Bennett Nov 16, 2020 1:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
shhhh. 101% compliance in Oct, but carry on the with weaker compliance.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email