OPEC+ weighs further steps to support market, sees weaker compliance | Reuters

OPEC+ weighs further steps to support market, sees weaker compliance | Reuters

OPEC and its allies discussed weaker compliance with pledged oil output cuts on Monday and weighed further action to support the market as the second wave of coronavirus hits demand.

The Organization of Petroleum Exporting Countries, Russia and others, known as OPEC+, were due to raise output by 2 million barrels per day (bpd) in January as part of a steady easing of record supply cuts implemented earlier this year.

But, with demand for fuel weakening, OPEC+ has been considering delaying that increase or even making further cuts.

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.”