Opec+ Compromises With 500,000 B/D Jan Production Rise

4 Dec 2020 Issue: 63 / 49 By: Jamie Ingram

After drawn-out negotiations Opec+ eventually agreed to postpone January’s planned 1.9mn b/d production increase in favor of a much smaller 500,000 b/d boost. Further similar increments could be added each month.

A compromise agreement finally hammered out by Opec and Opec+ members late on 3 December came after a week of contentious talks in which simmering resentments came to the fore. Going into the talks these grievances were expected, but a full rollover of the existing cuts to at least March was still seen as the likeliest outcome (MEES, 27 November).

In the end, resistance from the likes of the UAE resulted in the compromise under which all parties can claim an element of victory. Those like the UAE who were aggrieved that production quotas were to be unchanged despite a number of states having overproduced have managed to secure modest production increases. Meanwhile the likes of Saudi Arabia which favored extending the status quo unchanged can be content that the January increase will be modest. (CONTINUED - 879 WORDS)