OPEC, Russia Meet to Extend Record Oil Cuts, Push for Compliance

Pradhan cautions against return of oil price volatility as Saudi, Russia agree to extend output cut deal

Pradhan cautions against return of oil price volatility as Saudi, Russia agree to extend output cut deal

Oil prices dropped on Thursday, reversing gains in the previous session, on concern over whether major crude producers will be able to agree to extend record output cuts, heightened by worries over a huge build in US distillate inventories.

The base case scenario right now is that OPEC+ continues with current production cuts of 9.7 million barrels per day (bpd) for the month of July and then meets to discuss the market situation.

The market was initially supported after a report said OPEC and its allies led by Russian Federation would meet on Saturday to discuss extending record oil production cuts and to approve a new approach that aims to force laggards such as Iraq and Nigeria to comply better with the existing curbs.

Saudi Arabia, OPEC's de facto leader, and non-OPEC leader Russian Federation are reported to have agreed to an extension to the deal at least by one month, according to TASS.

Brent crude was back above $40 a barrel, while futures in NY rose 2% on Friday.

"The world's oil exporters, including members of the OPEC+ alliance, do not want prices below $30 a barrel, but there's no consensus on how much higher prices should be", said Victor Shum, vice president of energy consulting at IHS Markit.

Saturday's video conferences would start with talks between members of the OPEC at 12:00 GMT and would be followed by a gathering of the OPEC+ group at 14:00 GMT, OPEC said on Friday.

Glee star Lea Michele dumped by Hello Fresh over co-stars’ bullying claims
Hours after making a public apology , Lea Michele has been hit with even more claims of treating her past co-stars poorly . CNN has reached out to representatives for Michele and Ware for further comment.

Three OPEC sources said an extension to cuts was contingent on high compliance.

"As a representative of the UAE, I find it disappointing and unacceptable that some of the largest producers with capacity like [Saudi Arabia] and Russian Federation comply 100 percent or more while other major producers do less than 50 percent", he wrote in the letter seen by Reuters.

"OPEC+ will take one month at a time here", said Bjarne Schieldrop, chief commodities analyst at SEB AB, which "makes sense since demand outlook visibility is so low".

Oil prices fell on Thursday on doubts over the ability of top crude producers to agree to extend record output cuts, heightened by worries over a build in USA fuel inventories. Nigeria said it would also aim to reach full compliance.

The 23-member OPEC and its partners, led by Russian Federation, are expected to approve an extension Saturday of the historic production cuts that were reached in April.

The meeting was initially scheduled to take place later this month, but the organization made a decision to bring it forward.

Recommended News

  • DC Mayor Bowser unveils 'Black Lives Matter Plaza' near White House

    DC Mayor Bowser unveils 'Black Lives Matter Plaza' near White House

    The back and forth between Bowser and Trump intensify over the last few days as demonstrations continued to swell in the streets. So far, Bowser has not publicly replied to either Trump or the Black Lives Matter city chapter.
    Brooklyn Nets star Kevin Durant:

    Brooklyn Nets star Kevin Durant: "My season is over".

    When he initially received right shoulder surgery back in March, the point guard was expected to be sidelined through the summer. Durant should be ready to roll for November 10's training camp and potentially the December 1 opener for the 2020-21 season.
    Reddit Co-Founder Alexis Ohanian Resigns to Help

    Reddit Co-Founder Alexis Ohanian Resigns to Help "Curb Racial Hate"

    He closed out his statement by saying, "I believe resignation can actually be an act of leadership from people in power right now. Reddit's former interim Chief Executive Officer Ellen Pao publicly criticized the company this week.
  • Floyd redux in Jodhpur, cops deny brutality charge

    Floyd redux in Jodhpur, cops deny brutality charge

    One of the constables is seen kneeling on the man to restrain him and beating him while the other cop holds his arm. In a horrific video, a Rajasthan policeman was seen kneeling down on a man's neck in Jodhpur .
    Stephen Curry, Klay Thompson among Warriors at Oakland protest — George Floyd

    Stephen Curry, Klay Thompson among Warriors at Oakland protest — George Floyd

    "On Wednesday, Dubs forward Juan Toscano-Anderson organized Walking in Unity , a peaceful walk around Lake Merritt in Oakland ". We're all here for the same objective . "We're all human beings", Toscano-Anderson said in a video released by the Warriors .
    Biden shreds Trump for calling Friday a 'great day' for George Floyd

    Biden shreds Trump for calling Friday a 'great day' for George Floyd

    In addition, the report from mid-May doesn't reflect the effect that protests across the nation have had on business. A few blocks away, city workers painted a huge "Black Lives Matter" sign on 16th Street leading to the White House .
  • Michael Jordan to Donate $100 Million to Social Justice Causes

    Michael Jordan to Donate $100 Million to Social Justice Causes

    In his statement , Jordan makes sure to note that Black Lives Matter and that he wants to help provide real change for his people. I stand with those who are calling out the ingrained racism and violence toward people of colour in our country.
    Dwayne Johnson Slams Trump In Powerful Speech: 'Our Country Is Crippled'

    Dwayne Johnson Slams Trump In Powerful Speech: 'Our Country Is Crippled'

    All lives matter because we, as Americans, we believe in inclusivity, we believe in acceptance, we believe in human rights. But, I am a man and a father who cares deeply about my family and children and the world they live in. "That's who I am".
    Council contractor paints over Black Lives Matter mural after complaint

    Council contractor paints over Black Lives Matter mural after complaint

    The initial plan for the Sydney event provided by the organisers indicated 50 people were expected to attend. The blacked out Black Lives Matter mural in a "misunderstanding" by the council in the Pottergate underpass.
  • The D.C. Board of Elections’ epic fail

    The D.C. Board of Elections’ epic fail

    Visit the National Council of State Legislatures for a list of each state's election - and potential runoff election - dates. The total of mailed-in ballots so far is more than 20 times the 37,000 who voted that way in 2016.
    SpaceX Launches Another Batch of Starlink Internet Satellites

    SpaceX Launches Another Batch of Starlink Internet Satellites

    They are contracted by NASA to launch Crew-1 in the next few months, which will carry four astronauts to space according to CNN . The liftoff occurred at the scheduled time from the Space Launch Complex 40 at Cape Canaveral Air Force Station here in Florida.
    Apple’s tracking iPhones stolen by looters

    Apple’s tracking iPhones stolen by looters

    If you pick up a looted iPhone , the device is not shy about telling you that it has been stolen from an Apple Store. But, the good news is, the Cupertino giant is taking a unique approach towards catching all the culprits.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.