The Organization of Petroleum Exporting Countries (OPEC) plans to determine the oil output quotas for its members and its allies to strengthen the crude price, Mohammad Barkindo, OPEC’s Secretary-General, said in a letter seen by Reuters.
Barkindo pointed out that in order to achieve the agreed reduction, the member countries have to cut around 3.02% from their output, which is higher than the expected reduction of 2.5%. In addition, OPEC will accommodate Iran, Libya and Venezuela from being exempted from the output cut.
Saudi Arabia plans to reduce around 10.2 million barrels per day (b/d) from January 2019, which is deeper than allocated.
“I would urge Your Excellencies to kindly make positive announcements reinstating your countries’ commitment to implementing the agreed decisions. This is also vital to underpin trust in our decisions and to buttress ourselves from any naysayers who may doubt our commitment,” Barkindo said in the letter.
Sources said that, initially, OPEC would not publish individual quotas, but OPEC secretariat plans to publish it by the end of December.
OPEC announced during their meeting in Vienna on December 6 that they agreed to reduce 1.2 million b/d.