ASSESSMENTS

OPEC+ Production Cuts Meet Another COVID-19 Reality Check

MIN READNov 25, 2020 | 20:39 GMT

The OPEC logo is seen at the group’s headquarters in Vienna, Austria, on May 24, 2017.

The OPEC logo is seen at the group’s headquarters in Vienna, Austria, on May 24, 2017.

(JOE KLAMAR/AFP via Getty Images)

During its next meeting, the Organization of the Petroleum Exporting Countries (OPEC) and its allies will likely agree to roll over their current oil production cuts through the first quarter of 2021. But in the second half of next year, the opposing priorities of its OPEC+ members will increase pressure to either change the structure of the cuts or accelerate their removal, leaving the global oil market oversupplied and oil prices relatively low for longer. OPEC is scheduled to hold a meeting to discuss production quotas on Nov. 30, while the broader OPEC+ block, which includes Russia, will meet on Dec. 1. The meetings, which were scheduled months ago, come as the COVID-19 pandemic continues to hammer the oil market. ...

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