OPEC and allies led by Russia, known as OPEC+, were due to raise output by 2 million barrels per day in January as part of a steady easing of record supply cuts. With prices weakening, OPEC+ is considering delaying the increase or cutting further. 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. Algeria, holder of the rotating OPEC presidency, has backed an extension of existing cuts and top exporter Saudi Arabia has said the OPEC+ deal could be “tweaked” if needed.
Other options, seen by sources as less likely, include going ahead with the planned increase or cutting supply further. Meeting will also review compliance with supply cuts. Oil was trading below $44 a barrel, finding support in recent sessions from hopes of a COVID-19 vaccine and for further action by OPEC+. The full OPEC+ is due to meet on Nov. 30 and Dec. 1 to decide policy.