⁍ OPEC+ could hold an extraordinary meeting in October if oil markets weaken further.
⁍ Saudi Energy Minister Prince Abdulaziz bin Salman said on Thursday.
⁍ Brent oil prices extended their gains to trade up 3% on the news.
– The world’s biggest oil producers and Russia aren’t about to change the course of the oil market any time soon. At a meeting Thursday in Vienna, OPEC and its allies decided not to change the amount of oil they produce, despite the fact that the price of oil has fallen by more than 50% since January, reports the Wall Street Journal. OPEC and Russia have been reducing production since January 2017 to support prices and reduce global oil stockpiles. They increased their cuts to a record 9.7 million bpd from May to July after demand plunged due to the coronavirus crisis. The panel, however, pressed laggards such as Iraq, Nigeria, and the United Arab Emirates to cut more barrels to compensate for overproduction in May-July while extending the compensation period from September to the end of December, according to three OPEC+ sources. The group, known as OPEC+, warned that rising COVID-19 cases in some countries could curb energy demand despite initial indications of a decline in oil stocks, according to a draft press release and internal document seen by Reuters. OPEC+ could hold an extraordinary meeting in October if oil markets weaken further, Saudi Energy Minister Prince Abdulaziz bin Salman said Thursday, according to an OPEC+ source. Brent oil prices extended their gains to trade up 3% on the news, above $43 per barrel LCOc1. Prince Abdulaziz was speaking at a closed-door meeting of OPEC and its allies, led by Russia, which pressed for better compliance with oil output cuts. “Full compliance is not an act of charity. It is an integral part of our collective effort to maximize the interest and gains of every individual member,” said Prince Abdulaziz.
Source: https://www.reuters.com/article/oil-opec-int/opec-may-hold-extraordinary-october-meeting-if-oil-market-worsens-source-idUSKBN2680RB