On December 6, the Organization of Petroleum Exporting Countries (OPEC) will hold a meeting in Vienna, Austria, to discuss prospects for crude oil production cuts. Sources pointed out that Russia's position is the key to reaching an agreement.
Reuters quoted four sources on the 4th as saying that OPEC+ is discussing a production cut-off agreement and said that Russia's refusal to cut production sharply is the main obstacle to reaching the agreement.
Bundish crude oil prices continued to fall due to market concerns about oversupply of crude oil and a stronger US dollar. Brent crude oil fell more than 20% in November. At the same time, the global economic growth rate is showing signs of slowing, which has caused investors to worry about the demand outlook of the crude oil market, which has led to further pressure on the market. OPEC leader Saudi Arabia took the lead in November to hint at the need to cut production sharply from January next year.
Three of the four sources were from OPEC members and one from non-OPEC oil producers. They said that the meeting would be held in a very difficult environment.
Russia has a tough attitude, according to one OPEC source.
Russia's attitude towards crude oil production has been unclear. Russian President Vladimir Putin announced after meeting with Saudi Crown Prince Salman during the G20 meeting that he agreed to cooperate with Saudi Arabia to monitor the market situation, but Russian Energy Minister Novak has previously stated that Russia Crude oil production will remain essentially unchanged until the end of the year. According to the latest data from the Russian Ministry of Energy, the daily output of Russian crude oil reached 11.4 million barrels, the highest level since the collapse of the Soviet Union.
The source has hinted that Russia may contribute about 140,000 barrels per day to production cuts, but the OPEC led by the Middle East insists that Russia cut production by 250,000-300,000 barrels per day.
Two OPEC sources, the focus of the negotiations is to reduce production by 3-3.5% from the October output level, with no exception for one member state. A Reuters monthly survey in November showed that compared with October, the daily output of OPEC's 12 member countries participating in the production reduction agreement fell by 110,000 barrels, while the total daily output of OPEC fell by 160,000 barrels.
Qatar said on the 3rd that it will withdraw from OPEC and focus on the development of natural gas, which is a big blow to Saudi Arabia, which is trying to show solidarity against the fall in oil prices.