DUBAI: Members of the Organization of Petroleum Exporting Countries (OPEC) have reached consensus on the need to expand the current three-month reduction in oil production beginning in January and will seek to convince their partners in the larger OPEC+ community to accept such a move, the Algerian Minister said on Monday.
Shortly before the Opec ministers started talks to negotiate a proposal that would help producers cope with poor demand in 2021 due to the coronavirus crisis, Algerian Energy Minister Abdelmadjid Attar, the holder of Opec’s rotating presidency, spoke.
“At the Opec level, there is agreement… Extending the present contraction of 7.7 million barrels per day (bpd) to … the end of March,” Attar said, according to Algeria’s state news agency.
After preliminary consultations by key ministers on Sunday, the Opec, Russia and others a party known as Opec+, held their larger talks on Tuesday after struggling to find a consensus.
As of January, Opec’s+ was due to ease current supply cuts by 2m bpd. With demand already under pressure, however, Opec’s+ has considered expanding current cuts of 7.7 million bpd, about 8% of global demand, into the first months of 2021, a stance endorsed by Saudi Arabia, sources said.