OPEC+ Moves Towards Approving a Slight Increase in Oil Production for December

SadaNews - Discussions among the "OPEC+" alliance are currently focused on approving a slight increase in oil production for December, according to three representatives familiar with the ongoing talks ahead of an online meeting scheduled for Sunday.

The representatives, who requested anonymity due to the sensitivity of the information, indicated that the leading countries in the alliance, led by Saudi Arabia, are considering an increase of 137,000 barrels per day, the same increase that was implemented during October and November. "Bloomberg" reported earlier this week that this increase is the likely scenario.

One of the representatives noted that consultations will continue on Sunday, with the virtual meeting set to begin at 5 PM Vienna time.

The OPEC+ Alliance Continues to Restore 1.65 Million Barrels of Production

The "OPEC+" alliance continues to implement a plan for the gradual re-injection of approximately 1.65 million barrels per day of the production that was cut two years ago, having reactivated part of this quantity earlier this year. This strategy comes despite signs of a long-awaited surplus and warnings of a potential greater glut in the market next year.

The "International Energy Agency", based in Paris, expects global crude supply to exceed demand by more than 3 million barrels per day during the current quarter, with the surplus expected to worsen unprecedentedly next year, at least theoretically.

However, actual production increases have been much lower than announced amounts, as some members seek to compensate for previous overshooting in pumping rates, while others face technical difficulties preventing them from increasing their output, limiting the actual impact of those increases on the market.