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OPEC+’s meeting that was put on the books at the last minute for Saturday is now being delayed to Sunday, according to anonymous Reuters sources.
No reason for the meeting delay has been given.
The group had decided to get together at the last minute, ahead of the November 30 and December 1 full meetings, to discuss things about the plan for oil production starting in January.
The group is expected to come to some sort of agreement on relaxing the current production quotas that OPEC+ is currently tasked with meeting. Most analysts expect that the group will extend the current agreement into 2021, for a period of three months.
But one item that is less clear is the by-country quotas—whether all countries will have the same quotas for the additional three months, or whether there will be changes for specific countries—with some being asked to cut more and some being allowed to cut less.
One country that is currently in question is Libya, which has been adamant that it not be part of any efforts to curb production until it reaches a point where it can consistently produce 1.75 million barrels of oil per day.
Other questionable matters include Nigeria, which has asked—much like Russia—to have condensates (a lighter-gravity crude that if often blended with other crude grades and is typically harder to refine in large quantities) backed out of its calculations. This would no doubt ensure Nigeria’s compliance without having any effect whatsoever on the group’s attempt to drawdown oil inventories.
The UAE is another country that may give OPEC a headache, signaling that it might be unhappy with its current OPEC membership and quota.
Representatives from Russia and Saudi Arabia are both expected to be present at Sunday’s meeting.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.