Citing Organization of the Petroleum Exporting Countries (OPEC) sources familiar with discussions, Reuters on Tuesday reported that OPEC and its allies were considering whether to deepen crude oil production cuts at their next meeting in December due to worries about the dismal energy demand outlook in 2020.
“The Saudis want to prevent oil prices from falling. But now they want to make sure that countries like Nigeria and Iraq reach 100% compliance first as they have promised,” one OPEC source told Reuters. “In December we will consider whether we need more cuts for next year. But it is early now, things will be clearer in November.”
With the initial market reaction, the barrel of West Texas Intermediate spiked to a daily high of $54.80 and was last seen trading at $54.65, adding 2.3% on a daily basis.
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