Opec discussions on cutting output at the looming 30 November meeting in Vienna will take place with the group pumping at record highs. October’s 33.84mn b/d smashed September’s previous record by a mammoth 420,000 b/d.
Output is 840,000 b/d above the upper limit of the organization’s proposed 32.5-33mn b/d target range: it’s difficult to see where such sizeable cuts can come from. Of course, Opec is not bound by the outline of the Algiers accord, it’s not 33mn b/d or bust. Having ramped up output through five consecutive monthly rises (including four consecutive records), would markets seize on a higher range – perhaps 33-33.5mn b/d – as a sufficient compromise? (CONTINUED - 1095 WORDS)