OPEC+ considers last-ditch talks ahead of decision on oil cuts

*Cartel is considering whether to delay January 2021 supply hike, as it reschedules informal meeting from Saturday to Sunday

Alexander Davis | ConsumerConnect

Ahead of the oil bloc’s decision whether to delay output increase January 2021 or otherwise, Saudi Arabia and Russia have summoned a small group of OPEC+ countries for last-minute talks this weekend.

It was learnt that a clear majority of OPEC+ watchers expect the group to maintain their supply curbs at current levels for a few months longer due to lingering uncertainty about the strength of demand.

The report, however, stated that the decision is by no means certain amid public complaints from Iraq and Nigeria, and private discord with the United Arab Emirates (UAE).

Harry Tchilinguirian, Head Of Commodity Markets Strategy at BNP Paribas SA, said: “The technical groundwork has been laid down for OPEC+ to postpone a tapering of its output cuts.

“Now the political groundwork needs to be put in place.”

The two leading members of the Organisation of Petroleum Exporting Countries (OPEC) and its allies, Russian Deputy Prime Minister Alexander Novak and Saudi Energy Minister Abdulaziz bin Salman, requested an informal video conference with their counterparts from the Joint Ministerial Monitoring Committee, including Algeria, Kazakhstan, Iraq, Nigeria and the UAE, according to Bloomberg.

The ‘hastily’ called meeting was later pushed to Sunday from Saturday because of a scheduling clash, according to a delegate.

The talks will be held a day before a full OPEC ministerial meeting on November 30, followed by an OPEC+ gathering on December 1.

The JMMC met online as recently as November 17, but that ended without any kind of recommendation about delaying the January supply increase.

According to report, the 23-nation network known as OPEC+ made vast production cuts during the depths of the pandemic to offset a historic collapse in fuel demand.

The alliance had planned to ease some of the curbs at the start of 2021 in anticipation of a global economic recovery, reviving about 1.9 million barrels a day of halted output, having managed a similar resumption over the summer.