Saudi Offers Extra Cut As OPEC+ Agrees Oil Output Rollover

MOSCOW/LONDON:Saudi Arabia will make voluntary cuts to its oil output in February and March as part of a deal to persuade most OPEC+ producers to hold production steady amid concerns that new coronavirus lockdowns will hit demand.

Two sources from OPEC+ producers said Saudi Arabia would cut output by more than 400,000 barrels per day (bpd) in the next two months on top of its existing cuts.

Two producers – Russia and Kazakhstan – will be allowed to bump up their output by a combined 75,000 bpd in February and a further 75,000 bpd in March, Kazakhstan’s energy minister said.

The rest of OPEC+ will hold output steady, meaning the group’s overall cuts would amount to around 7.05 million bpd by March, a draft OPEC+ statement seen by Reuters should, excluding the planned voluntary additional cuts from Saudi Arabia.

The unusually complicated deal by OPEC+, which combines OPEC producers and others including Russia, follows debate that forced a second day of negotiations.

Russia and…

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