OPEC+ and its allies are aiming to reach a production agreement as they meet on Sunday to debate a new deal, possibly adjusting the countries’ output quotas and leading to a further cut in production, according to Reuters.
Once the consensus is reached, the new cut would take the total volume of reductions to 4.66 million bpd, or around 4.5% of global demand.
OPEC+, which consists of the Organization of the Petroleum Exporting Countries and allies led by Russia, pumps around 40% of the world’s crude, reports Reuters.
Sources told the outlet that additional production cuts were being discussed among options for Sunday’s session.
“We are discussing the full package (of changes to the deal),” one person said.
Cuts could total 1 million bpd in addition to the existing cuts of 2 million bpd and the voluntary cuts of 1.6 million bpd, which were announced unexpectedly in April and took effect in May, Reuters reported, citing the sources.
The April announcement helped to drive oil prices about $9 per barrel higher to above $87, but they swiftly retreated under pressure following concerns over global economic growth and demand.
Reuters reported that the group will address the issue of baselines for 2023 and 2024, from which each member performs cuts.
In the leadup to the meeting, the United Arab Emirates pushed for a change to the way its output cuts are measured, Bloomberg reported.
According to the report, the UAE’s gain would come at the expense of African countries asked to give up some of their unused quotas, which they were reluctant to accept.
Image and article originally from www.benzinga.com. Read the original article here.