OPEC agrees to extend production cuts

According to Algerian Energy Minister Abdelmadjid Attar, the Organization of Petroleum Exporting Countries (OPEC) has reached a consensus on the need to extend the commodity's current production cuts for three months from January. Now the countries in the group will have to convince their allies in Opec+. 

"There is a consensus, at the OPEC level, to extend the current cuts of 7.7 million barrels per day (bpd) by the end of March," Attar said, according to Algeria's state news agency. The minister made the comments after OPEC ministers began discussions on a policy that would help producers cope with weak demand in 2021 due to the coronavirus crisis.

OPEC+ would hold a meeting on Tuesday (01), but negotiations were postponed by two days so that ministers have more time to reach an agreement. The group was expected to ease production cuts by 2 million bpd from January. But with demand still under pressure, countries have considered extending the current cuts of 7.7 million bpd, about 8% of global demand, for the first months of 2021, a position advocated by Saudi Arabia, sources said.


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