OPEC Plus reaches an agreement on oil production policy

Sources revealed to Reuters that “OPEC +” has reached an agreement on oil production policy

The sources said that OPEC countries and their allies met today, Sunday, to discuss a new agreement that may adjust production quotas from member states for this year and next, and discuss an additional cut at a time when the bloc is facing a decline in oil prices and a possible oversupply looming on the horizon.

The sources indicated that the bloc known as “OPEC +”, which includes the countries of the Organization of the Petroleum Exporting Countries and allies led by Russia, postponed the start of the official talks by at least three and a half hours due to discussions about the production baseline on which the quotas and the reduction are calculated.

The sources stated that there are attempts to convince countries that do not meet production from Africa, such as Nigeria and Angola, to have a more realistic production target.

“Talks with African producing countries are proving difficult,” said one of the sources in OPEC +

It is noteworthy that a source in OPEC + said today, Sunday, that Saudi Arabia will make additional voluntary cuts in oil production as part of an agreement for the bloc.

Two other OPEC + sources said that the bloc will likely agree to extend the existing policy until the end of this year and implement additional cuts in 2024 if new baselines for production are agreed upon among member states.