OPEC+ is making progress toward a deal that would lay out the plan for the group’s oil production in 2021. The official meeting has been delayed until Thursday, after it became clear that additional dialogue would be required before a consensus could be reached.
At odds appear to be the most influential members of the group, which include Saudi Arabia, Russia, and the UAE—each with their own idea of how much production will be called for in the new year.
While progress has been made toward a deal, according to sources who spoke to Bloomberg, there has been no specifics as to what the headway looks like—no specifics.
Russia is the most bullish member of the group, holding onto the idea contained in the original plan that calls for the group to gradually increase output starting in January.
The UAE is asking for all members to be in compliance with the current deal before any extensions of the current deal are imposed and appears to be jockeying for better terms for itself as it struggles with its budget despite adding significantly to its oil reserves last month.
Saudi Arabia, the more aggressive oil production cutter of the group—and the group’s main swing producer—favors doing whatever is necessary to curb inventories and lift oil prices.
The suggestion that the group is merely making headway and not necessarily near a deal could be interpreted as trouble, particularly as the two allies in the group, the UAE and Saudi Arabia, appear to be on different pages.
Nonetheless, oil prices were up on Wednesday afternoon, with WTI and Brent each trading up nearly $1 per barrel by 2:00 p.m., with WTI trading at $45.49, and Brent crude trading at $48.41.
