OPEC+, which consists of OPEC and other oil-producing countries, is considering suspending crude oil production as countries led by the U.S. have lifted strategic stockpiles, according to reports.
Citing an official familiar with the issue, the Wall Street Journal (WSJ) reported on the 24th (local time) that OPEC+ is considering stopping the monthly increase in crude oil production in its country. The media explained that the measure was a protest against the U.S.-led decision by South Korea, China, and the U.K. to release strategic stockpiles of a total of 70 million barrels to stabilize international oil prices.
Currently, Saudi Arabia and Russia are leading the move, the WSJ said.
It is not known how much production discontinuation volume OPEC+ is considering. Earlier in April last year, OPEC+ reduced its daily crude oil production by 9.7 million barrels due to the COVID-19 Pandemic (global pandemic). Since then, it has been gradually increasing production by increasing daily production by 400,000 barrels since July this year, judging that the economy has begun to recover.
However, the WSJ added that as other OPEC+ countries such as the United Arab Emirates (UAE) and Kuwait are reportedly opposed, it remains to be seen whether it will actually lead to a measure to suspend production.