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OPEC + agrees on oil production reduction options

OPEC + agrees on oil production reduction options

OPEC+ discussions on the deal parameters from 2021 now boil down to proposals for a gradual easing of the decline in oil production over several months; this was reported to Bloomberg by one of the Alliance's delegates.

"OPEC + discussions are now focusing on proposals to ease production cuts over several months gradually," the delegate said. However, he did not disclose the terms and parameters of a possible easing.

Norway is going to withdraw from the OPEC + agreement. From the beginning of 2021, the country will increase the volume of oil production, so experts expect a sharp drop in oil prices in the future.

Notably, now OPEC+, according to the deal that started in may, reduces oil production by 7.7 million barrels per day. It is further assumed that from January 2021 to the end of April 2022, OPEC+ will reduce oil production by 5.8 million barrels per day. The Alliance is thinking of postponing this step for some time, but there is no consensus yet.

The OPEC + countries reached an agreement on the reduction of oil production on April 12. The deal envisages a reduction of 9.7 million barrels per day in May-June, 7.7 million barrels in July-December, 5.8 million barrels in January 2021-April 2022.

The OPEC+ countries will meet again at the negotiating table on December 3 via videoconferencing. Members of the Alliance must finally decide on the deal's parameters to reduce production for 2021.

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