The leading Oil-Producing Countries Saudi Arabia and Russia want to talk this weekend with a small group of members of OPEC oil cartel and allies about whether or not to extend production restrictions. Next week it must be made clear whether or not the planned increase in production will be postponed in January.
The OPEC countries and allies (OPEC+) have to meet formally next week. For the time being, the aim would be to increase production by almost 2 million barrels of oil per day in January. The countries had just cut production considerably earlier this year in order to support the oil prices that were hit hard by the COVID-19 crisis.
In the markets, the postponement of the production increase by a few months is widely taken into account. That decision is by no means certain. There is criticism from Iraq, Nigeria and the United Arab Emirates, among others.
Recently, oil prices have been on the rise, thanks to the economic recovery and also the hope of a vaccines. There are, however, concerns about the increasing number of infections and new quarantine anew in many countries that could undermine the recovery of the oil market.