OPEC+ Said to Focus on Proposals for Gradual Taper of Cuts - Bloomberg

OPEC+ Said to Focus on Proposals for Gradual Taper of Cuts - Bloomberg

OPEC+ is making headway in its negotiations on oil-output cuts, raising the odds that Thursday’s meeting can salvage a deal after failed talks earlier in the week.

After days of direct negotiations between the group’s heavyweights -- Russia, Saudi Arabia and the United Arab Emirates -- discussions are now focusing on proposals for gradual easing of output cuts over several months, said a delegate. It’s unclear whether the tapering would start in January, or would be delayed to later in the first quarter.

The proposals, if accepted by the whole OPEC+ group, would modify the current deal that allows 1.9 million barrels a day of fresh crude supplies to be added to the market from Jan. 1. The person, who asked not to be named because the information was private, did not specify whether the proposals would return that same volume of production over a longer period, or a different amount.

The Organization of Petroleum Exporting Countries and its allies need to hash out an agreement on supply levels for next year. Initially, talks had centered on delaying the January production hike by three months, but that option ran into obstacles on Monday amid a clash between Saudi Arabia and the UAE. Since then, delegates have been trying to find a way forward.