OPEC+ panel to meet amid oil price decline, worry of virus impact

OPEC and allies, led by Russia, are scheduled to hold an online meeting on Thursday to discuss compliance with their agreed output cuts and demand trends amid falling oil prices and a faltering economic recovery outlook.

The key OPEC+ panel will be reviewing an internal document which warned; that a rise in coronavirus cases in some countries may curb oil demand despite signs of economic recovery; and initial indications of a decline in oil stocks; according to a copy of the report seen by Reuters on Thursday.

In detail the panel of major producers including Saudi Arabia and Russia from the Organization of the Petroleum Exporting Countries and its allies; a group known as OPEC+; is unlikely to recommend any changes to their current output reduction target of 7.7 million barrels per day (bpd); or around 8% of global demand.

They will, however, press laggards such as Iraq, Nigeria and the United Arab Emirates; to cut more barrels to compensate for overproduction and possibly extend the period for the compensation; OPEC+ sources said.

On Wednesday, a technical OPEC+ panel; known as the JTC, met to review the compliance of the oil exporting group which was 101% of the agreed target in August; according to OPEC sources and the document seen by Reuters.