Russian central bank says OPEC+ may delay oil output rise

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Energyworld

MOSCOW, Russian central bank said on Thursday that OPEC+, the group of leading oil producing countries, may delay a planned increase in oil output from Jan. 1, 2021 as the pandemic has negatively impacted the economic outlook and oil demand.

OPEC+ is due to raise output by 2 million barrels per day (bpd) in January – about 2 per cent of global consumption – as it moves to ease this year’s record supply cuts. With demand weakening, OPEC+ has been considering delaying the increase.

“The worsening outlook for the global economy’s recovery and, accordingly, for the oil demand are pressuring the oil market. In such an environment, OPEC+ may make a decision to delay the planned easing of oil output cuts from January 2021,” the bank said in its review.

“On one hand, this could lend support to the oil prices, but on other hand, oil companies would not be able to raise output volumes.”

Earlier this week, three sources close to OPEC+ told Reuters that OPEC and allies including Russia are leaning towards delaying next year’s planned increase in oil output to support the market during the second wave of COVID-19 and rising Libyan output, despite a rise in prices. (Reporting by Olesya Astakhova, Vladimir Soldatkin and Lena Fabrichnaya; editing by David Evans)

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Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.