OPEC is preparing to increase oil production cuts

Wednesday 04th December 2019 - 17:24

OPEC is preparing to increase oil production cuts


OPEC is poised to increase oil production cuts this week but still needs to agree with allies such as Russia on details of a deal aimed at boosting oil prices and averting a glut in supply next year.

OPEC has been cutting production since 2017 to tackle a supply surplus stemming from booming production in the United States, which has become the world's largest oil producer and is not involved in cuts. An increase in production from non-OPEC countries such as Brazil and Norway threatens to worsen the glut next year.

Iraq, OPEC's second-largest oil producer, said on Tuesday that key members of OPEC support a further OPEC + cut from the current level of 1.2 million barrels per day, or 1.2 percent of global demand. The Organization of Petroleum Exporting Countries (OPEC) will meet on Thursday in Vienna, followed by a meeting with Russia and others in a group known as "OPEC +" on Friday.