The OPEC + talks came to a standstill on Monday after the group did not agree on the best way forward for oil production, the body reported on Monday afternoon.
OPEC and the non-OPEC Ministerial Meeting held on Monday will now resume on Tuesday 5 January, giving the group more time to discuss and reach some sort of agreement on February’s oil production.
The group has so far been unable to reach an agreement, with some countries working hard for an increase in production of 500,000 barrels per day, and others hoping to stay the course, given the still-relaxed demand and small signs of an increase as closure and a new extra-virulent Covid-19 strain begins to spread to more countries. The two heavyweights in the group, Russia and Saudi Arabia, are again at the other end of the spectrum, with Saudi Arabia putting the group under pressure to bring back the additional production launched in January of 500,000 bpd , and Russia hopes for a significant increase in 500,000 bpd. The gap between them is now 1 million bpd. However, Saudi Arabia has said it will be accepted to stay the course in February.
The position of Saudi Arabia supports Oman, Iraq, Algeria, Nigeria and Kuwait. Russia’s support is Kazakhstan.
These two members hold the most in the group, with Saudi Arabia as the swing producer. And it is these two members who also pumped oil prices in March when they argued over the same issue. This quarrel involved both countries increasing oil production to further saturate an already saturated oil market before months and months of blockades that removed the demand for crude oil.
Ahead of Tuesday’s meeting, groups will hold bilateral talks and be able to consult with their own governments, the delegates said, according to Reuters.
The market should offer more volatility this year, thanks to OPEC, and meetings are scheduled to be held monthly.
By Julianne Geiger for Oilprice.com
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