OPEC countries may consider deeper oil cuts

Saudi Arabia and other OPEC countries discuss the possibility of a more significant reduction in oil production due to the increase in the number of people infected with coronavirus and the introduction of new restrictive measures in European countries in this regard.

Report says, citing the Wall Street Journal informs referring to sources.

According to the publication, OPEC is considering a further reduction in oil production as one of the measures connected with the low demand for it.

Algerian energy minister Abdelmadjid Attar, who holds OPEC's rotating presidency, told his country's parliament on November 3 that he favored maintaining the current cuts through the first few months of 2021. The first quarter generally sees the lowest oil demand.

"Algeria is trying, with other countries, including Russia, Saudi Arabia, and Iraq, to convince the other OPEC + countries to maintain the current production ceiling at the start of the next year," Attar said.

Notably, the updated agreement on reducing OPEC+ oil production has been in effect since May of this year. When the Alliance countries reduced output by 9.7 million b/d, the deal's first stage ended in August. From September to the end of this year, 7.7 million b/d will be reduced. And from January 1, the restrictions should reach 5.8 million b / s. The agreement is valid until April 2022.