Cailianshe (Shanghai, editor Shi Zhengcheng) reported that on Tuesday local time, the OPEC+ ministerial supervision committee held a video conference and issued an official statement, further providing a signal for the OPEC+ meeting to finalize the extension of the production cut schedule in two weeks.
(Source: OPEC official website)
According to previous reports, OPEC officials discussed delaying the relaxation of production cuts originally scheduled for January next year by three to six months. The final decision will be made at the plenary meeting from November 30 to December 1.
In a statement released today, OPEC+ said that "all participating countries must remain vigilant, proactive and be prepared to take action as required by market requirements." Although there are no rumored postponement suggestions, the market still regards "preparation action" as a signal that the organization is expected to postpone. Previously, Saudi Arabia and Russia have both given positive attitudes to the postponement.
OPEC+ also said that OPEC and non-OPEC countries reduced their supply of crude oil by about 1.6 billion barrels between May and October this year, which is the key to market balance. Including the compensatory production cuts of 768,000 barrels per day in various countries, the level of production restrictions adjustment since May has reached 99.5% of the promised.
As of press time, the December contract of WTI crude oil futures fell 0.73% to US$41.04 per barrel; Brent crude oil futures fell 0.96% to US$43.40 per barrel in January 2021. For most OPEC countries, this price is still significantly lower than the breakeven point of , which maintains government spending. In addition, it will still take time to distribute the vaccine after it is approved for market, which will also bring concerns that crude oil demand will continue to be sluggish for months in the future.
