Postponement of the “OPEC Plus” meeting to continue the search for “delicate balance”

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OPEC and its allies led by Russia postponed talks on oil production policy in 2021 until Thursday, according to three sources, while the main players are still different over how much oil should be pumped amid weak demand due to the Coronavirus pandemic.
The OPEC Plus group, which includes members of the Organization of the Petroleum Exporting Countries, Russia and other allies, was due to hold its meeting on Tuesday. OPEC Plus was expected to reduce the existing production cuts by two million barrels per day as of January 2021, but with continued pressure amid the Corona pandemic, OPEC Plus is considering extending the current cuts of 7.7 million barrels per day, equivalent to about 8% of global demand. , To the first months of 2021, a position supported by Saudi Arabia, the largest OPEC producer.
After failing to reach a consensus in initial consultations on Sunday, sources said that Russia had proposed increasing the group’s production by 0.5 million barrels per day per month from January.
Saudi Energy Minister Prince Abdulaziz bin Salman said at the OPEC meeting on Monday that he would step down from participating in the chairmanship of a ministerial oversight committee, according to three OPEC sources.
Kremlin spokesman Dmitry Peskov said the differences between Russia and OPEC were not as big as they were in early 2020 when they led to the collapse of the talks and a jump in production.
But Peskov said that Russian President Vladimir Putin does not intend to contact the Saudi leadership before the OPEC Plus meeting, even though it was a move that had previously helped ease any conflict.
OPEC Plus must strike a delicate balance between pushing prices up enough to help member states’ budgets but not sharply to increase competing US production. US shale oil production tends to rise when prices exceed $ 50 a barrel.

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