OPEC and allies led by Russia have yet to find a consensus on oil output policy for 2021, after an initial round of talks yesterday and ahead of crucial meetings today and tomorrow, four OPEC+ sources told Reuters.
OPEC+, a grouping comprising members of the of Organization of the Petroleum Exporting Countries, plus Russia and others, had been due to ease production cuts from January 2021, but a second coronavirus wave has reduced demand for fuel around the world.
OPEC+ is now considering rolling over existing cuts of 7.7 million barrels per day, or around 8% of global demand, into the first months of 2021, sources have said.
Preliminary consultations yesterday between the key ministers, including from OPEC’s leader Saudi Arabia and Russia, had not reached a compromise on the duration of the rollover.
Sources have said talks were now focusing on extending cuts by three to four months, or on a gradual increase in output. Ideas of deeper cuts or a six-month rollover were much less likely, the sources said.
“There is no consensus as yet,” one of the four sources said.
A second source said: “There are many different ideas on the table… Also, a gradual increase (in production).”
The main meeting was expected to begin at 1300 GMT today. –Nov 30, 2020.
