Non-Opec bilaterals delay Opec+ meeting

Today's scheduled meeting between Opec and allied non-Opec producers in Vienna has been delayed as various non-Opec participants hold bilateral discussions.

The wider Opec+ group was scheduled to meet at 10:00 CET (09:00 GMT) to discuss steeper production cuts in the wake of the coronavirus outbreak, which has slashed global crude demand. It is unclear if the meeting will proceed, according to two delegates.

Opec member countries agreed last night to recommend that the Opec+ group deepen its collective cuts by 1.5mn b/d until the end of the year, having suggested earlier in the day that it should only apply to the second quarter.

This would bring the group's total cuts to 3.6mn b/d below October 2018 levels, including a 400,000 b/d additional voluntary reduction pledged by Saudi Arabia.

But Russia has not been on board with proposals to revise quotas. One Opec+ delegate said Russia's concerns about further cuts are linked to its belief that falling global oil demand growth can be resolved through financial stimulus packages, and not reactionary oil market measures. Deeper production cuts could also force Russia to completely shut down some facilities, which would be difficult to restart because of the cold weather.

By Rowena Edwards, Ruxandra Iordache, Samira Kawar and Iain Packham

source: Argus Media