OPEC must liquidate accumulated excess before the end of the year
Member countries achieved an additional 344,000 barrels per day cut in September. Before the end of 2020, they must settle the excess of 2,330,000 bpd
According to a report issued by the OPEC + group, the OPEC countries must achieve before the end of 2020 the liquidation of the accumulated excess, which amounts to 2,330,000 barrels per day (bpd).
In September, the member countries of the international organization managed to make an additional cut of 344,000 bpd. With the new requirement, they hope to cut the group’s global production, which is set at 8,460,000 bpd between October and December.
In the period between May and August, the OPEC + group managed to accumulate an overproduction of 2,375,000 bpd. However, doubts persist as to whether the group will be able to fully compensate for the excesses of 2,330,000 barrels per day before the end of this year. It should be remembered that the deadline was September.
According to the Oil Minister of the United Arab Emirates (UAE), Suhail al-Mazrouei, “it is unlikely that the deadline will be delayed again.” For his part, however, OPEC Secretary General Mohammed Barkindo has indicated that it is too early to know if he will not make another extension until 2021.
At the same time, the members of the OPEC + Joint Technical Committee (JTC), which studies market conditions, have proposed an alternative scenario, characterized by a drop in oil demand and an increase in Libyan production. In any case, they will have to wait until the next JTC meeting that will take place on November 16.
M.Pino
Source: bancaynegocios
