OPEC and its partners are unlikely to decide on their output policy in the upcoming April meeting as it would be too early to get a clear picture of the impact of their supply cuts on the market by then, three OPEC sources said on Monday.
The sources said the production policy by the OPEC+ alliance is expected to be agreed on in June with an extension of the pact- the likely scenario so far, but much depends on the extent of US sanctions on both OPEC members Iran and Venezuela.
“So far the likely decision is to extend the agreement in June. Nothing much is planned for April, just to discuss the OPEC and non-OPEC,” one OPEC source told Reuters.
Another OPEC source said the most likely outcome of the June meeting was “a rollover” of the current oil supply cuts.
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Meanwhile, Russia’s Energy Minister Alexander Novak announced that his country plans to speed up oil output cuts this month and by the end of the month it will bring the combined oil production cut level to 228,000 barrels per day (bpd) from the October level.
“We have an understanding that in March there will be higher compliance rate,” Novak told reporters on Monday.
OPEC and other large oil producers led by Russia agreed to cut their combined oil output by 1.2 million bpd starting from January 1 to evenly balance the market and prop up weak oil prices.
Oil prices increased on Tuesday as US West Texas Intermediate (WTI) crude oil futures were at $56.28 per barrel, down 31 cents, or 0.6 percent, from their last settlement, and Brent crude futures were at $65.33 per barrel, down 34 cents, or 0.5 percent.
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