OPEC talks on oil production to go into second day
FRANKFURT, Germany (AP) — Leaders of the OPEC oil cartel adjourned their virtual meeting Monday on future production as no agreement was announced on whether to extend output cuts into next year.
The OPEC nations, led by Saudi Arabia, will reconvene Tuesday, according to a short statement from the cartel's Vienna headquarters. The talks will include additional members from a wider group, known as OPEC Plus, that also includes Russia.
There had been speculation that the cartel would agree to keep its production at a reduced level for a longer period of time in order to support oil prices as the economic slowdown caused by the pandemic has slashed demand for energy.
It's tricky to predict how much oil the world will need with coronavirus cases surging around the world. There have been some hopeful signs for the economy, with several drug companies reporting promising results from coronavirus vaccine trials.
But some experts warn that oil demand may never fully recover, because the coronavirus travel restrictions, combined with the steps governments and corporations are taking to reduce use of fossil fuels to combat global warming, may have put a permanent dent in oil demand.
Additionally, the coalition of oil-producing countries has been restricting its output for months, straining its members.
“The longer these agreements go on, the harder it is to hold it together,” said Jacques Rousseau, managing director at Clearview Energy Partners. “There becomes too much temptation for countries to exceed their production targets.”
OPEC and its allies agreed to cut production in April by about 10 million barrels per day through July. Then in August, as some cities around the world took steps to re-open their economies, the group upped its production so it was cutting...