On Thursday, OPEC (Organization of Petroleum Exporting Counties) administrations are predicted to a big production cut, but they are facing upcoming conflict to accept approval Russia, who is the non-OPEC leader.
The 14-OPEC members and 10 non-OPEC members are known as OPEC+ and meeting of the whole group is going to be held in Vienna, Austria.
Meeting of OPEC+ comes due to weaker demand for oil, and prices are under threat amid coronavirus spread. Last year’s oil demand had already fluctuated by the United States and China’s trade war.
Both Russia and Saudi Arabia, non-OPEC, and OPEC producers, for the first time, reduced their oil production in 2016 to maintain oil prices, and the deal resulted in force in January 2017.
The deal was expanded in December 2019, and the alliance has decided to stop oil production almost by 1.7 million bpd (barrels per day). Moreover, Saudi Arabia has voluntarily cut their production for three months by 400,000 bpd and also described that fellows should strictly follow their commitments.
In Feb, OPEC’s JTC (Joint Technical Committee) suggested to curtail oil production by 600,000 b/p and expansion of the cuts to 2020, that’s to reduce the pressure on oil prices.
Thus far, Russia has not decided to sign up for oil cuts, and it seems like to continue that position of oil cut for the coming days.
On Thursday, an OPEC meeting in which oil ministers are involved, such as Russia and Saudi Arabic, have tried to end up over an output cut, but the meeting resulted in no agreement, said by news reporters.
OPEC+ meeting comes at that time when the international market’s focus is on coronavirus outbreak. Moreover, OPEC also has given instruction of ‘dos and don’ts’ to stop the coronavirus spread that advising to oppose hugging, kissing, hand shaking, and keep away from those who have a cough.