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OPEC + is nearing a deal on a moderate escalation in oil production, according to The Wall Street Journal. The price of oil reacts by falling.
Illustration image.
Essam Al Sudani / X03713
Published:,
The OPEC oil cartel and the partner countries (OPEC +) are approaching an agreement on a moderate increase in production of up to 500,000 barrels per day from January.
Says people with knowledge of the discussions, according to The Wall Street Journal on Thursday.
The message sends the price of oil down. A barrel of Brent North Sea oil now costs $ 47.78, compared to $ 48.4, which was the price level before the announcement.
The price rose earlier, before falling 0.25 percent on the day. Then the price recovers part of the price drop.
OPEC + will meet on Thursday at 2 pm after the planned meeting was postponed earlier this week due to disagreements between the countries. Oil analyst Helge André Martinsen of DNB Markets has pointed out that there may be a slow reduction in production cuts, meaning that the cuts will be smaller.
– The expectations have been that they will postpone the reduction of the cuts for three months. From what we understand, various alternatives involving a gradual reduction in cuts are now being discussed as the OPEC + countries move closer to a compromise, Martinsen wrote in a comment Thursday.
The corona pandemic and subsequent shutdowns have caused oil demand to plummet, which has lowered oil prices, and the OPEC countries have not agreed on how much oil to pump.
