The Strategist

WSJ: OPEC discusses increased oil production cuts

11/04/2020 - 02:49

Saudi Arabia and other OPEC countries are discussing an increasing decline in oil production due to the worsening coronavirus situation in the world, The Wall Street Journal (WSJ) reports citing sources.

David Dixon
David Dixon
In addition, Algerian Energy Minister Abdelmajid Attar said that Russia, Algeria and Iraq have invited OPEC+ countries to maintain the level of oil production decline in the first months of 2021, reports Algieri Press Service.

According to Mr. Attar, Algeria, Russia and Iraq are proposing to maintain the current level of oil production cuts of 7.7 million barrels per second (bps) in early 2021 to avoid a new price drop due to a second wave of coronavirus demand. According to The Wall Street Journal, the OPEC countries share a similar view, and are even discussing increasing production cuts.

In the spring, the OPEC and OPEC+ countries agreed to cut oil production by 9.7 million barrels per day for three months due to falling demand amidst the pandemic. In August, the conditions softened to a reduction of 7.7 million barrels per day until the end of the year. Production in 2021 was scheduled to decline by 5.8 million barrels per day by the end of April 2022.