- December 5, 2020
- Posted by: virtualxstore
- Category: trading
OPEC+ Announces a Compromise Deal
On Thursday, OPEC and its allies, including Russia, agreed to increase output by a modest 500,000 barrels per day (bpd) from January.
The increase means OPEC+ would move to cutting production by 7.2 million bpd, or 7% of global demand from January, compared with current cuts of 7.7 million bpd.
OPEC+ had been expected to extend existing cuts until at least March, after backing down from earlier plans to boost output by 2 million bpd.
Russian Deputy Prime Minister Alexander Novak said the group would now gather every month to decide on output policies beyond January with monthly increases not exceeding 500,000 bpd.
Monthly meetings by OPEC+ will make price moves more volatile and complicate hedging by U.S. oil producers.
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