OPEC+ is likely to agree on output cuts at a meeting on Thursday, but only if the US participates, Reuters reported, citing three sources from the alliance. To cope with the massive impact of the COVID-19 pandemic on the oil market, OPEC and its allies have started a discussion on cutting their output. However, they want other non-OPEC production, especially the US, to join the effort.
The meeting would be held at 1400 GMT via video conference on Thursday, the sources added. Saudi Arabia will hold a separate teleconference meeting of G20 energy ministers and members of some multinational organizations on Friday. A source said that one of the plans would be getting the US involved in the production cut agreement.
Saudi Arabia and Russia have long been frustrated that OPEC+ production curbs created an opportunity for US shale oil firms to grab the market share. US Energy Secretary Dan Brouillette said that US producers would adjust output on their own, following the free market mechanisms.
Under normal conditions, boosting oil prices through coordinated production cuts will violate US antitrust laws. However, analysts said it could be legal if the federal government was involved. According to US President Donald Trump, OPEC had not asked him to order US oil companies to cut their production.
