OPEC+ will gather for a second day, following an unexpected suspension of talks on Monday when a majority of members, including Saudi Arabia, opposed Russia’s proposal for a February supply hike.
Ministers need more time to resolve differences over how much extra oil the market can take as the accelerating coronavirus pandemic leads to tighter lockdowns. The extension of the negotiations casts doubt on the production increase of 500,000 barrels a day the market had been expecting for February. It also calls into question similar supply boosts traders had penciled in for March and April.
Differences of opinion between Saudi Arabia and Russia, the two de-facto leaders of OPEC+, can make for tricky meetings. While Moscow appeared to be outnumbered on this occasion, the group typically requires a consensus among all members before concluding talks. Failure to reach a compromise is rare but can have damaging consequences, notably last year’s monthlong price war.
Before ministers gather again at 3:30 p.m. Vienna time, they will have the chance to hold bilateral talks and consult with their home governments, delegates said.
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