OPEC and its Russian-led partners (OPEC +) are in favor of extending oil production cuts for another two or three months, according to sources close to discussions on the issue planned this week.
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The deal has not yet been signed, and issues related to the past adherence of a number of countries to decisions may still prevent understandings.
Rising oil prices are also changing market dynamics, according to sources quoted in the report, giving some countries more validity when it comes to demanding a re-increase in output.
The Organization of the Petroleum Exporting Countries (OPEC) is scheduled to meet on Monday to outline its production strategy for the coming months, at which point it will turn to discuss the issue with a number of non-member countries led by Russia the following day.
The two groups, known as OPEC +, went into a short-term price war earlier this year, but have since collaborated to curb output and raise prices, after the plague led to the closure of large parts of the global economy, which reduced demand.
In April, OPEC + countries agreed to reduce global output by 9.7 million barrels per day. According to the agreement, manufacturers had to gradually increase output again, by two million barrels per day, every six months, assuming the plague peak would be behind them by the end of the year. The first increase in output was made in the summer. Although the current leader of OPEC, Saudi Arabia, has in recent months considered delaying the next increase in output, of two million barrels per day, which is due to take place in January, oil prices have recently recovered and are now trading at 50 Dollar per barrel – a 25% increase in the last month.
Demand in China and Asia has recovered significantly from the decline in the number of people infected there, and recent news about a number of vaccines that have been shown to be effective and safe to use have also helped increase demand – and with it prices.