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OPEC is gearing up to deepen production cuts later this week but still needs to agree with allies such as Russia over details of a deal to support oil prices and head off a looming oil glut next year.
The Organisation of the Petroleum Exporting Countries (OPEC) meets on tomorrow in Vienna followed by a meeting with Russia and others, a grouping known as OPEC+, on Friday. OPEC+ has been curbing output since 2017 to counter oversupply as a result of booming output in the United States, which has become the world’s biggest producer and is not taking part in cuts.
By 2020, rising production in non-OPEC countries such as Brazil and Norway threaten to add to the glut.
OPEC’s actions in the past have angered U.S. President Donald Trump, who has repeatedly demanded OPEC’s de facto leader, Saudi Arabia to bring oil prices down if it wants Washington to provide Riyadh with military support against arch-rival Iran. In the past few months Trump has remained silent on OPEC but he faces re-election in November next year when the issue of gasoline prices is likely to become a hot political topic again.
