Saudi Arabia Asks Other Members to Cut Oil Output

Saudi Arabia is asking other OPEC+ members to reduce their oil output quotas but some members are resisting, OPEC delegates said, cited by Bloomberg.

• The producers were progressing toward a compromise on this matter before the weekend, but have yet to clinch an agreement, delegates said.
• Several sells-side analysts such as JP Morgan have flagged that OPEC+ may deepen output cuts going into the new year, while Commerzbank and Pierre Andurand have warned that prices may decline further if the group will not deepen cuts.
• While some OPEC members have reduced output, the producer group is facing pressure from non-OPEC supply growth from markets such as Guyana, Brazil, Canada and the US according to Francisco Blanch, Head of Global Commodity and Derivatives Research at Bank of America.
• The OPEC+ meeting is scheduled for 1PM GMT (8AM ET) Thursday according to a draft agenda seen by Reuters.