OPEC and its Russia-led partners are leaning toward extending oil production cuts for another two to three months, according to officials familiar with the discussions, The Wall Street Journal reports.
They hope that this move will keep markets tight even as prices start to recover from Covid-19-inspired lows earlier this year.
A deal isn’t done yet, these officials said, and issues related to several countries’ past compliance could still prevent an agreement when the group meets online next week to discuss the issue. Recently buoyant oil prices are also changing market dynamics, they say, giving some countries more firepower in arguing for opening taps back up.
The Organization of the Petroleum Exporting Countries is scheduled to meet on Nov. 30 to map out its production strategy for the coming months. Then it will huddle with a group of Russia-led producers the following day.
In April, OPEC’s 13 members and 10 Russia-led producers agreed to carry out record production cuts of 9.7 million barrels a day.
The accord called for producers to return that production gradually, in stages of two million barrels of added crude a day, every six months, assuming the worst of the pandemic would fade before the end of this year.
In the summer, the group moved ahead with the first increase in output.
NEWS.ru earlier reported that the price of January futures for Brent crude on the London ICE Futures exchange by 8:15 Moscow time on Nov. 17 was $44.21 per barrel, which is $0.39 (0.89 percent) higher than the price at the closing of the previous session.