Opec to extend oil cuts by three months

DUBAI: The Organisation of the Petroleum Exporting Countries (Opec) members have reached a consensus on the need to extend existing oil production cuts for three months from January and will work on convincing their allies in the wider Opec+ group to support such a move, Algeria’s minister said on Monday.

Algerian Energy Minister Abdelmadjid Attar, holder of Opec’s rotating presidency, was speaking shortly before the Opec ministers began talks to discuss a policy that would help producers cope with weak demand in 2021 due to the coronavirus crisis.

“There is consensus at the Opec level … on extending the current 7.7 million barrels per day (bpd) cuts until … the end of March,” Attar said, according to Algeria’s state news agency.

The Opec, Russia and others, a group known as Opec+, hold their wider talks on Tuesday, after informal discussions of key ministers on Sunday had failed to reach a consensus.

Opec+ had been due to ease existing production cuts by 2m bpd from January. But, with demand still under pressure, Opec+ has been considering extending existing cuts of 7.7m bpd, about eight per cent of global demand, into the first months of 2021, a position backed by Saudi Arabia, sources said.