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The OPEC oil cartel and its cooperating countries (collectively the group called OPEC +) met on Monday to discuss a proposal to continue current production cuts that were introduced after demand for oil fell during the crisis of the crown.
However, no agreement was reached on whether the provision should be introduced, and the group announced after the cartel meeting that it will postpone discussions until Thursday.
After several days of direct negotiations between OPEC heavyweights, hence Russia and Saudi Arabia, the group is now negotiating a gradual and partial reduction in production cuts over a period of several months, Bloomberg News reports. Thursday.
It is not clear if the phase-out will begin at the end of the year or later in the first quarter.
The Wall Street Journal, for its part, writes that sources with whom the newspaper has been in contact say the cartel is nearing an agreement on a cautious increase in production to 500,000 barrels a day in January.
The price of a barrel of North Sea oil (burned point) fell very steeply from an increase of around one percent to a decrease of 0.6 percent before Thursday’s meeting.
However, the price has recovered somewhat, and at 12 noon it is at 48.0 dollars a barrel, an increase of 0.1 percent.
Will postpone increased production
The disagreement between the parties in the meeting has been that some countries want to maintain the current cuts of 7.7 million barrels per day to take care of a vulnerable oil market after the crown, while other countries want to stop the cuts to 5.8 million barrels. take advantage of rising oil prices in the hope of a new coronary vaccine.
It is the smaller producers, the Emirates and Kazakhstan, who have strongly opposed continuing the cuts, while the major OPEC countries, Russia and Saudi Arabia, are in favor of continuing the cuts.
Gradual increase
DNB Markets analyst Helge André Martinsen writes in a comment on oil on Thursday that a possible and probable outcome could be to maintain the current cuts of 7.7 million barrels per day through January and then increase production by one million barrels to February and March. with an increase of another million barrels in April.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content can only be done with written permission or as permitted by law. For more terms, see here.
