OPEC and Russia deepen oil output cuts

Sources told Reuters that OPEC and its allies led by Russia are close to the agreement to reduce oil supplies for next year, to support crude prices and prevent the abundance of oil. The Organization of Petroleum Exporting Countries (OPEC) will meet in Vienna on Thursday and then meet Russia on Friday. 
OPEC has cut crude since 2017 to counter booming production from the United States, which has become the largest producer in the world, where rising production in it and in other non-OPEC countries such as Brazil and Norway to increase production abundance next year. The cut has angered US President Donald Trump, which made him bargain Saudi Arabia for providing military support against Iran in exchange for OPEC price controls. Meanwhile, trade disputes between China and the US continue to affect the economic outlook for next year.
Two OPEC sources confirmed to Reuters that the group would consider increasing the current cuts of 1.2 million barrels per day to more than 400 thousand barrels per day. Iraq, OPEC’s second-largest producer, confirmed on Tuesday that Saudi Arabia, the actual OPEC member, supports a cut of 1.6 million barrels per day, or 1.6% of global demand, and is expected to extend the new deal to June or until the end of 2020.
Russian Energy Minister Alexander Novak assured Prince Abdul Aziz that energy cooperation between Russia and Saudi Arabia should continue. Saudi Arabia needs to raise oil prices to support its budget revenues and Saudi Aramco’s IPO.
OPEC prices range from $ 50 to $ 75 a barrel last year. OPEC sources confirmed that Riyadh is pressing in Iraq and Nigeria to oblige them to quotas that may provide additional reductions of up to 400 thousand barrels per day.
So far, Russia has not agreed to extend and deepen the cuts from its current quota of 228,000 barrels per day, explaining that it has difficulty cutting production during the winter months because of extremely low temperatures. Russia is still trying to solve the problem of measuring its production.