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OPEC+ starts meetings to weigh further steps to support market

Published 16/11/2020, 12:22
© Reuters.

By Alex Lawler and Ahmad Ghaddar
LONDON, Nov 16 (Reuters) - The Organization of Petroleum
Exporting Countries and allies started meetings on Monday that
will look at further action to support the oil market in 2021,
as the second wave of coronavirus weighs on demand and prices.
OPEC and allies led by Russia, known as OPEC+, were due to
raise output by 2 million barrels per day in January as part of
a steady easing of record supply cuts. With prices weakening,
OPEC+ is considering delaying the increase or cutting further.
An option gaining support among OPEC+ is keeping the
existing supply curbs of 7.7 million bpd for another three to
six months, OPEC+ sources said, rather than tapering the cut to
5.7 million bpd in January as currently called for.
"Discussion on this is possible," said an OPEC source,
citing "weaker demand and rising Libyan output."
Two OPEC+ committees are meeting virtually this week. The
Joint Technical Committee started its meeting on Monday at 1000
GMT and the higher-level Joint Ministerial Monitoring Committee,
which can recommend policy steps to OPEC+, meets on Tuesday.
Algeria, holder of the rotating OPEC presidency, has backed
an extension of existing cuts and top exporter Saudi Arabia has
said the OPEC+ deal could be "tweaked" if needed. Other options, seen by sources as less likely, include going
ahead with the planned increase or cutting supply further.
Monday's meeting will also review compliance with supply
cuts, which sources said on Friday stood at a robust 101% in
October. Oil was trading below $44 a barrel on Monday, finding
support in recent sessions from hopes of a COVID-19 vaccine and
for further action by OPEC+. O/R
The full OPEC+ is due to meet on Nov. 30 and Dec. 1 to
decide policy.

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