The OPEC logo pictured ahead of an informal meeting between members of OPEC) in Algiers on September 28 2016. Picture: REUTERS/RAMZI BOUDIA
It’s hard to believe things are so tense, given that there appeared to be little argument about the need to delay a planned tapering of the output cuts while economies are still roiled by the coronavirus. Adding 1.9-million barrels a day of supply to the market from the start of January would be a reckless gamble given the recovery in oil demand remains patchy. Bloated stockpiles of crude and refined products need to be drawn down before pumping more oil.
The real sticking point is its demand that those noncompliant countries continue to make deeper compensatory cuts next year. And that’s a long list, which includes Iraq, Russia, Gabon, Nigeria and Kazakhstan.