The Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing countries', known as OPEC+, meeting delayed two days as OPEC members failed to reach a consensus on an extension of the existing production cuts deal among themselves.
According to international media, the date for the 12th OPEC and non-OPEC Ministerial Meeting scheduled for Tuesday has been postponed to Thursday.
On Monday, 13 OPEC member countries, which began a virtual two-day meeting, failed to reach a consensus at the 180th ordinary meeting, ahead of meeting with Russian led non-OPEC 10 oil-producing countries.
Following the talks, the organization announced late Monday that the OPEC meeting "adjourned" and member countries agreed to meet again one day later on Tuesday "for further deliberations."
As a solution for the lackluster oil demand caused by the global pandemic, the OPEC+ group agreed in April to collectively lower the group's total oil production by 9,7 million (bpd) from May 1 to June 30.
In line with the April agreement, the OPEC+ lowered their crude oil production cut to 7.7 million bpd from Aug. 1 to Dec. 31, with one month delay as 9.7 million bpd which was supposed to be effective until June 30 was extended due to the worsening pandemic situation.
According to the same deal, which expires on April 30, 2022, the group was expected to pare that amount further by around 2 million bpd to 5.8 million bpd as of Jan. 1, 2021.
However, the group now plans to keep the current production levels for at least three months due to the weakened oil demand outlook caused by the acceleration in COVID-19 cases and oversupply in Libya.
By Firdevs Yuksel