OPEC plans to extend the current oil cut agreement by 3 months

The OPEC + group, which includes major oil-producing countries, began yesterday studying market conditions and the possibility of extending the current reduction, before agreeing to postpone the increase in production in January by two million barrels per day. OPEC + is considering whether to ease oil production restrictions, as it agreed before, or to continue to Production at the same pace in light of weak oil demand and the repercussions of the pandemic.

Sources said: There is an agreement in the Organization of Petroleum Exporting Countries and its allies, to extend the production cut for 3 months from next January, and a source at OPEC + told Reuters that the Minister of Energy in the United Arab Emirates informed the Joint Ministerial Committee to monitor the production reduction that all members must implement First, pledges to reduce oil completely before agreeing to change or extend the current agreement, and oil prices varied yesterday, without deviating from their path leading to gains for the fourth consecutive week before the meeting.

Brent crude for January delivery was up 35 cents, equivalent to 0.7%, to $ 48.15 a barrel, while the February contract increased 42 cents to $ 48.21, but West Texas Intermediate crude fell 28 cents, or 0.6%, to $ 45.43 a barrel.

“While the successful distribution of the vaccine will break the link between transmission and the movement of individuals, even then it is likely that global oil demand will not reach its pre-pandemic levels until mid-2022,” said JP Morgan. “Saudi Arabia called on other OPEC member states. + Last Tuesday, due to flexibility in responding to market needs, sources in OPEC + said that an option that is supported among the member states of the group is to keep the existing cuts of 7.7 million barrels per day for a period of between three and six months, instead of reducing the cuts to 5.7 million barrels per day in January.

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