The Organization of the Petroleum Exporting Countries (OPEC) and its allies, such as Russia, are weighing on whether to extend oil production cuts into 2021 given the weak demand outlook due to resurgent pandemic, according to Reuters. Talks held to discuss whether to extend output cuts started in January 2017 to support prices and reduce inventories.
- Weak demand outlook prompting OPEC and allies to delay easing reductions, but the United Arab Emirates and Russia says cuts would be eased as planned.
- With oil unchanged at $40 and more supply from Libya, OPEC is under pressure to revise plan to ease oil output cuts.
- Currently, OPEC has cut production by 7.7 million barrels a day (bpd), a reduction from 9.7 million bpd maintained between May 1 to August 1, and plans further cuts by 2 million bpd in January.
Oil prices are improving. Crude Oil WTI is up 0.19%,