OPEC likely to defer output policy decision until June: sources
OPEC and its partners are unlikely to decide on their output policy in April 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, Trend refers referring to Reuters.
The sources said the production policy by the so-called 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 U.S. 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 (cooperation pact),” one OPEC source said.
OPEC and its allies meet next in Vienna on April 17-18 and delegates say another gathering is scheduled for June 25-26.
Another OPEC source said the most likely outcome of the June meeting was “a rollover” of the current oil supply cuts.
“But production by the exempt countries is already more than 700,000 bpd below the October level. Maybe there will be some adjustment,” the second source said.
On Jan. 1, the Organization of the Petroleum Exporting Countries and its allies began new production cuts to avoid a supply glut that could soften prices. OPEC, Russia and other non-members — the OPEC+ alliance — agreed to reduce supply by 1.2 million barrel per day for six months.