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Saudis to propose relaxing OPEC+ production curbs by 2M bbl/day – WSJ


Key members of OPEC and its Russia-led allies are set to meet Wednesday via web conference to discuss a Saudi proposal to relax the group’s production curbs by 2M bbl/day, amid signs that demand is returning to normal levels following COVID-led lockdowns, WSJ reports.

Saudi Arabia led a push in April that saw the OPEC+ group cut its collective output by 9.7M bbl/day as oil demand collapsed; delegates say a new Saudi proposal would relax current curbs to 7.7M bbl/day.

“If OPEC clings to restraining production to keep up prices, I think it’s suicidal,” WSJ quotes a source familiar with Saudi thinking.

The renewed optimism coincides with a Friday report from the International Energy Agency showing COVID-19’s worst effects on global oil demand have passed but will linger as the market slowly recovers in H2 2020.

ETFs: USO, UCO, BNO, SCO, USL, DBO, USOI, NRGU, OILK, OLEM, OILX





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