OPEC is piling pressure on its members and allies to delay or water down output cuts planned for January, according to Bloomberg. OPEC and its allies had cut 2021 forecasts for crude oil, citing weaker Q4 demand, rising COVID-19 cases, and higher Libyan supply.
- OPEC anticipates between 27 million and 29 million barrels a day next year amidst output cuts in May
- A deteriorating demand outlook has combined with expectations of more supply from non-OPEC rivals, which has risen by 1 million barrels a day since July
- Increase in non-OPEC oil supply driven by expectations of higher oil output in the U.S. which is seen to rise to an average of 18.06 million barrels a day next year from 17.27 million barrels July forecast
- OPEC output restrictions could delay return of oil stockpiles to normal levels.
- OPEC to meet in late November and December to ratify a pact to add barrels to the market in January
- The world now needs between 600,000 and 2.2 million barrels a day less crude from OPEC to balance supply and demand than was thought three months ago.
Oil futures and crude oil prices are declining. CL! is down 3.19%, WTI is down 3.40%
