The Organization of Petroleum Exporting Countries and allies started meetings on Monday to explore further action to support the oil market in 2021 as the secondary coronavirus wave weighs on demand and prices, reports Reuters. OPEC had indicated it would raise output by 2 million barrels per day (bpd) in January, but with declining prices, it is considering delaying output increases and could initiate further cuts.
- OPEC and allies could keep the existing supply curbs at 7.7 million bpd for another three to six months rather than cut it to 5.7 million bpd in January.
- Algeria, a holder of the rotational OPEC residency, is backing extension of existing output cuts while Saudi Arabia said the OPEC and allies deal could be changed if needed.
- OPEC and allies’ meetings will also review compliance with supply cuts.
- OPEC and allies will decide on policy on November 30 and December 1 meetings.
Oil futures are currently gaining. CL! is up 4.19%
