OPEC has coalesced around a plan to cut 1 million b/d of its own crude oil production and lobby Russia and nine other non-OPEC partners to slash 500,000 b/d of their output for a total reduction of 1.5 million b/d through the second quarter, according to sources familiar with the discussions.
This would be on top of their existing 1.7 million b/d cut deal, which would be extended, the sources said.
But convincing Russia to get on board may be a challenge, with Energy Minister Alexander Novak having told OPEC in Vienna Wednesday that he would not support deeper supply curbs, before returning to Moscow for consultations with President Vladimir Putin.
Novak and his non-OPEC counterparts will reconvene with OPEC on Friday.
OPEC ministers gathered Thursday in Vienna and quickly agreed on the need to tighten production quotas to offset the demand destruction brought about by the COVID-19 outbreak. A nine-country advisory committee on Wednesday had recommended the 1.5 million b/d additional cut, but without Russia’s endorsement.
“Something has to be done, that’s why we’re here,” Nigerian Oil Minister Timipre Sylva told reporters just before the meeting started.