OPEC is considering extending and deepening ongoing output cuts at next week’s scheduled meeting, sources have claimed.
The cartel’s national officials – representing the 13 member countries – plus officials from OPEC’s Vienna secretariat – are to meet on Wednesday and Thursday to discuss the market.
The two-day meeting, called the Economic Commission Board, was scheduled to finish on Thursday but will conclude later on Friday, two OPEC sources said.
“We have not agreed on final scenarios,” said one of the sources.
A second source said a deeper supply cut was an option depending on estimated growth in supply from non-OPEC and the ramping up of US shale oil and the consequent rising inventories.
The Organization of the Petroleum Exporting Countries, Russia and other producers originally agreed to cut production by 1.8 million barrels per day (bpd) for six months from Jan. 1 to support the market.
Oil prices, trading at around $53 a barrel, have gained support from reduced output but high inventories and rising supply from producers outside the deal have limited the rally, pressing the case for extending the deal.
Several OPEC countries have spoken out in recent weeks in favour of extending the cuts.