Daily Management Review

Reuters: OPEC+ is not going to cut oil production anytime soon


The OPEC+ alliance does not intend to reduce oil production in the near future. At the same time, there is a possibility that such a decision may be taken if oil from Iran returns to the world market, reports Reuters citing nine market sources.

harry_nl via flickr
harry_nl via flickr
The agency notes that oil from Iran could return to the world market if Iran and the West reach a nuclear deal.

The day before, OPEC+ said it was ready to cut oil production if oil from Iran, which is now under sanctions, is traded back on the world market, resulting in a surplus of oil.

The major oil producers in the OPEC+ deal were only able to increase production in September by 100,000 bpd due to lack of spare capacity. Under the terms of the deal, Russia should increase production to 11 million bpd, but this level will be extremely difficult to achieve, given the problems with exports due to sanctions.

source: reuters.com