The oil alliance OPEC + has continued its deliberations
According to the Russian agency Interfax, the oil cartel OPEC and its ten cooperation partners (OPEC +) continued their deliberations on the short-term production strategy on Tuesday. At their online ministerial meeting on Monday, the 23 states could not agree on whether to open the oil tap a little further in February or leave it at the current production level.
Saudi Arabia had warned against increasing production too early. Russia, on the other hand, was in favor of an increase in oil production by 500,000 barrels (159 liters each) a day next month, according to Russian news agencies.
According to information from the negotiating circles, the leading oil-producing countries are heading for a compromise according to which oil production should not be increased in February. That said four people familiar with the events of the Reuters news agency.
In the negotiating circles it was said that Russia and Kazakhstan had originally wanted to increase the output by half a million barrels per day. Iraq, Nigeria and the United Arab Emirates, on the other hand, would have wanted to keep the subsidy level. According to the negotiating circles, an increase in the production volume seems off the table.
Many oil exporting countries are in a difficult situation. They urgently need the income from the oil business for their national budget, but too much supply could put prices under pressure. The further course of the corona crisis with its economic consequences is important. The better the world economy runs again, the more oil is needed.
