Will OPEC+ Increase Oil Production In January?

OPEC+ is discussing the possibility of starting to raise its collective oil production from January, the Wall Street Journal reported, citing unnamed sources familiar with the discussions.

The extended oil cartel is meeting today to continue debates on the future of its oil production cut deal after it failed to reach an agreement on Tuesday. According to Reuters, most observers were unanimous that OPEC+ will continue with the current rate of cuts—7.7 million bpd—which were originally supposed to be in effect until the end of this year, to be followed by a relaxation of 2 million bpd beginning in January.

Russian business daily Vedomosti reported yesterday that Moscow would rather boost production from January by a modest 500,000 bpd, and The Wall Street Journal’s sources also mentioned this figure. In that, Vedomosti said, Russia’s position was shared by the UAE.

According to the WSJ sources, an increase in production of half a million barrels daily would be the compromise necessary to move the deal forward after internal divisions in OPEC+ cast a shadow over its future.

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Source: Oil Price