OPEC Demands Oil Producers to cut Production to Meet the Supply Plan

OPEC Demands Oil Producers to cut Production to Meet the Supply Plan

fb crude oil

Oil prices rose on Friday and may record a weekly gain for the third week in a row amid efforts by leading producers to limit production amid concerns about the pace of economic recovery. Both benchmarks tanked 1% on disappointing unemployment claims data in the US which indicated a rise in initial claims despite 75% cuts in unemployment benefits.

OPEC and partners have called on countries that have exceeded oil production quotas as part of a restrictive deal to increase cuts in August-September amid fears of slowing recovery of consumption. However, the group noted that demand will likely reach pre-crisis levels by the end of the year.

Some OPEC + members need to cut production by an additional 2.31 million barrels per day to compensate for overproduction, according to an internal OPEC + document.

The OPEC report also says that the cartel is considering an alternative scenario of developments in the market in the event of a second wave of the coronavirus pandemic. OPEC+ warns it may be longer and stronger in Europe, India, China, and the United States.

Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% and 76% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Share this post:

Credit: Tickmill

Leave A Comment

Your email address will not be published. Required fields are marked *