Sources: Saudi Arabia wants OPEC+ to deepen oil cuts due to Aramco IPO - Reuters
|Reuters quoted two unnamed sources with the knowledge of the matter, saying that the OPEC and its allies (OPEC+) is considering deepening the current set of output cuts by at least until June next year, as Saudi Arabia wants to deliver a positive surprise to the market before the listing of Saudi Aramco.
One of the sources said: “They (the Saudis) want to surprise the market.”
Another two sources added: “The latest OPEC analysis, drawn up by OPEC’s Economic Commission Board (ECB), showed a large oversupply and build-up in inventories in the first half of 2020, if not additional cuts were made.”
The deal being discussed by OPEC+, would be to add at least 400,000 barrels per day (bpd) to existing cuts of 1.2 million bpd, Reuters noted.
Monday’s rebound in oil prices have gathered steam following the above headlines, as WTI jumps above the 56 handle while Brent regain 61.50. Both crude benchmarks are trading 2% higher.
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