Sources: OPEC tends towards more cuts to oil production

UNITED STATES (OBSERVATORY NEWS) — Four major OPEC members are leaning towards a greater reduction in oil production compared to what was previously expected, given the drop in oil prices to $ 50 a barrel due to fears that the outbreak of the Coronavirus will negatively Strongly on rough request.

The sources said that members, including Saudi Arabia, are studying an agreement to reduce production by one million barrels per day in the second quarter of 2020, in addition to a proposed initial reduction of 600,000 barrels per day.

The Financial Times had first reported the idea of ​​a bigger cut.

The virus has caused about 2,800 deaths in China and has spread to dozens of other countries.

Oil has fallen about 25 percent since the start of the year due to falling demand and an expected slowdown in economic growth, which worries OPEC members.

The Organization of the Petroleum Exporting Countries and allies, including Russia, in what is known as the OPEC + group, are slashing oil production by 1.7 million barrels per day until the end of March.

OPEC + is scheduled to meet on March 5th and 6th to decide on future policy.


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