OPEC could reverse planned output increase should the need arises

OPEC could reverse planned output increase should the need arises, just as it said on Monday that it would not shirk its responsibilities to market as fears about the next spike Covid19 wave pushes down prices.

The price of Brent which is the benchmark the Nigeria’s Bonny stands at $42.41 per barrel while the WTI Crude sells at$40.69 per barrel

Oil prices sank on Monday over disappointing economic data out of China, fears of this resurgence of coronavirus cases, additional lockdown measure in Europe, and the looming threat that OPEC turn on the taps in January as originally planned.

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But sources inside member countries, according to Reuters said that this planned output the increase could be reversed should the need arises.

To assuage the fear present in the market, Saudi Arabia’s Energy Minister Abdulaziz bin Salman reminded the markets that OPEC has been particularly flexible during this trying year, adapting “to charging circumstance when required”

Energy Minister added that OPEC would not dodge its responsibilities in this regard. Oil prices however failed to recover Monday, this week

OPEC+ held its minister monitoring committee (JMMC) Monday to review member country performance as it pertains to the sticking to the agreed-upon -production cuts.

Noteworthy laggards have been Nigeria and Iraq, both of which had been tasked with overachieving in August, September, and beyond due to their chronic overproduction in earlier agreement.

OPEC is trying to ease on its restriction of oil production quotas come January, from the 7.7millionbpd cuts that are in effect now to5.8 million bpd.

While it was suggested Monday that OPEC might ease the production cuts in January after all, that decision won’t actually be made until the full group in November30 to December1.

Until then, the organisation is likely to jawbone the market to try to keep oil prices from further slippage- a scenario that would devastate many of OPEC members economies as they rely heavily on oil revenue for their budgets