UPDATE 8-OPEC+ postpones talks to Dec 3 amid disagreements - sources

* New coronavirus wave prompted rethink on output policy
* Saudi wants extension of existing production cuts
* Russia backs gradual output increase from January

(Updates with meeting postponed)
By Rania El Gamal, Ahmad Ghaddar and Olesya Astakhova
DUBAI/LONDON/MOSCOW, Nov 30 (Reuters) - OPEC and allies led
by Russia postponed talks on oil output policy for 2021 to
Thursday, three sources said on Monday as key players still
disagreed on how much oil they should pump amid weak demand due
to the coronavirus pandemic.
OPEC+, which includes the Organization of the Petroleum
Exporting Countries, Russia and other allies, had been scheduled
to hold its meeting on Tuesday at 1300 GMT.
The group had been due to ease existing production cuts by 2
million barrels per day (bpd) from January. But with demand
still under pressure amid the coronavirus pandemic, OPEC+ has
been considering extending existing cuts of 7.7 million bpd,
about 8% of global demand, into the first months of 2021, a
position backed by Saudi Arabia, sources said.
After consultations on Sunday failed to reach agreement,
sources said Russia suggested a possibility for OPEC+ to start
increasing output by 0.5 million bpd each month from January.
Further complicating the picture, OPEC member the United
Arab Emirates was also signalling it would be willing to support
a rollover only if members improved compliance with cuts.
Saudi Energy Minister Prince Abdulaziz bin Salman told the
OPEC meeting on Monday he would step down as a co-chair of a
ministerial monitoring committee, three OPEC sources said. It
was not clear why he was planning to do it.
Kremlin spokesman Dmitry Peskov said differences between
Russia and OPEC were not as severe as in early 2020, when
disagreements led to a collapse in talks and a surge in output.
But Peskov said Russian President Vladimir Putin had no
plans to call Saudi Arabia's leadership before the OPEC+
meeting, a move that in the past has helped smooth over any
dispute.
OPEC+ has to strike a delicate balance of pushing up prices
enough to help their budgets but not so much that rival U.S.
output surges. U.S. shale production tends to climb as prices
rise above $50 a barrel. Adding to the challenge within OPEC+,
Moscow's finances can tolerate lower oil prices than Riyadh's.
Global benchmark Brent crude LCOc1 , which settled down
1.2% at $47.59 a barrel on Monday, could fall as much as 10% if
OPEC failed to roll over cuts, Deutsche Bank said in a note.
O/R
Oil had a bull run last week, triggered by hopes for a
COVID-19 virus vaccine and expectations of a rollover in OPEC+
cuts.

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Graphic-OPEC+ Scenarios and Impact on Oil Inventories https://tmsnrt.rs/3pCSOLa
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