Monday, 2 November 2020

OPEC+ Inches Closer to Delaying Output Hike After Russian Talks - Bloomberg

OPEC+ Inches Closer to Delaying Output Hike After Russian Talks - Bloomberg

OPEC+ inched closer to delaying its January output increase, with Russia actively discussing keeping its current curbs for an extra three months as oil markets weaken.

The producer group, led by Russia and Saudi Arabia, has been dropping hints for weeks that its plan to add almost 2 million barrels a day to oil markets next year may not be such a good idea as the demand recovery falters.

Since President Vladimir Putin first said he was open to a delay, the outlook has worsened. France, Germany and the U.K. are going back into lockdown to curb the spread of the virus, while the U.S. has been seeing record numbers of daily cases.

Oil slumped 10% in London last week, with traders seeing signs of weaker demand, just as a peace deal in Libya floods the market with additional supplies. Crude futures dipped another 5% in the early hours of Monday, dropping to almost $35 a barrel, but recouped those losses as news emerged from Moscow.

No comments:

Post a Comment