The Organization of Petroleum Exporting Countries and its allies (OPEC+) has warned that the state of the oil market is in a “precarious” position and has hinted towards a change of tack in regards to oil cuts, according to Bloomberg.
Unless there is a change of policy the organization is set to reduce oil cuts by 2 million barrels of oil per day (mmbbl/d), something that oil analysts are strongly warning against doing.
Abdulaziz bin Salman and Alexander Novak erred on the side of caution with bin Salman warning of an uncertain outlook for oil demand and called on OPEC+ to be proactive.
Speaking at the meeting he said: “We know for certain it’s uncertain. We have to be able to take measures to head off negative trends and developments to nip them in the bud.”
However, the contentious issue of whether OPEC would go on as planned with the tapering of oil cuts at the beginning of 2021 was not touched on.