OPEC+ meeting nears with resolve for deep oil cuts

OPEC+ meeting nears with resolve for deep oil cuts

OPEC and its allies are moving closer toward a historic deal to take at least 10% of global crude supply off the market as they get set for the first of two critical meetings later Thursday, with key producers Saudi Arabia and Russia signalling their willingness to commit to significant production cuts, S&P Global reports.

OPEC kingpin Saudi Arabia could bring its production down to about 8 million b/d, from its current level of about 12 million b/d, according to a source briefed by the kingdom.

Meanwhile, Russia's energy ministry has said that Russia, the largest non-OPEC producer cooperating with OPEC, was prepared to cut 1.6 million b/d if others followed suit and cut proportionally. Russian crude and condensate production was 11.29 million b/d in March, according to government figures, though the previous supply accords of the so-called OPEC+ alliance only covered crude.

The positions indicate the OPEC+ coalition's math is starting to line up for a total production cut of 10 million b/d or more, though delegates said many details — including exact quotas, length of the deal, and participation by countries outside the group — remain in flux and could drag out talks at the meeting.

"What we are looking for is more participation from other countries, not only OPEC+ but outside, including the US, Norway and some other influential countries," Kuwaiti oil minister Khaled al-Fadhel told S&P Global Platts in an interview Wednesday.

The OPEC+ meeting via webinar is scheduled to start at 1400 GMT. From outside the 23-country alliance, Norway, Ecuador, Colombia, Argentina, Egypt, Indonesia and Trinidad and Tobago are expected to participate.

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