Opec+ agreed last Thursday to increase oil production by 500,000 barrels a day from January and said they would meet monthly to decide further output levels, gingerly adding more crude to the global economy still suffering from the Covid-19 pandemic. AFP
Opec+ agreed last Thursday to increase oil production by 500,000 barrels a day from January and said they would meet monthly to decide further output levels, gingerly adding more crude to the global economy still suffering from the Covid-19 pandemic. AFP
Opec+ agreed last Thursday to increase oil production by 500,000 barrels a day from January and said they would meet monthly to decide further output levels, gingerly adding more crude to the global economy still suffering from the Covid-19 pandemic. AFP
Opec+ agreed last Thursday to increase oil production by 500,000 barrels a day from January and said they would meet monthly to decide further output levels, gingerly adding more crude to the global e

Opec+ postpones meeting as producers disagree on curbs for 2021


Jennifer Gnana
  • English
  • Arabic

Opec+, the alliance headed by Saudi Arabia and Russia, moved its Tuesday meeting to Thursday, as producers remain on the fence about a rollover of output cuts.

On Monday, the group ended its first of two meetings on an uncertain note as countries disagreed on a production policy for the new year and volume of compensatory cuts to be made in 2021.

Oil fell for the second day following the contentious meeting. Brent, the international crude benchmark, was down 0.19 per cent at $47.79 per barrel, while West Texas Intermediate, the US oil gauge, fell 0.33 per cent to trade at $45.19 per barrel at 4.49pm UAE time.

Opec+ was initially scheduled to taper its current level of cuts at 7.7 million barrels per day to 5.8m bpd at the start of 2021. However, the rising number of Covid-19 cases and renewed lockdowns in several parts of the world have forced the group to consider extending the current volume of restrictions.

"A compromise in the form of a more gradual increase of the initially planned 2m bpd easing seems like an option, but if the reports of both Russia and Saudi Arabia being in favour of a rollover are indeed true then their preferred path still seems like the most probable outcome,” JBC Energy said in a note on Tuesday.

Opec is meanwhile preparing for the current low cycle of demand to persist into the new year.

While positive news on three Covid-19 vaccine developments proved to be a “light at the end of the tunnel”, the group remains cautious, Abdelmadjid Attar, Algeria’s energy minister and chairman of the Opec conference, told delegates in an online meeting.

Should Opec+ increase output as initially planned, oil markets will have to brace for a 200m barrel glut by May, Rystad Energy said in a report.

“The world in January will face its biggest monthly glut since April 2020 with an average daily surplus of 3.1m barrels for the month” if Opec+ fails to amend its current deal, the consultancy said.

Markets will see a gradual build-up of smaller surpluses that will continue to balloon through to May before reaching the 200m barrel mark and will eventually shrink from June, Rystad Energy added.

Opec+ agreed to cut output earlier this year as supply outpaced demand in oil markets and economies remained depressed due to the pandemic-induced lockdowns.

The industry went through its worst month in April, when demand collapsed to record lows and WTI traded at sub-zero levels, trading briefly at minus $40 due to storage capacity constraints.

“We believe keeping the current agreement in place – which calls for raising target production by 1.9m bpd from January 2021 – could send Brent back down to $40 per barrel or lower,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.

"A three-month extension would only provide marginal support to prices, but would help to establish $50 as a sturdier floor, while a six-month extension could help to meaningfully deplete the storage overhang and supercharge prices into the mid-$50s,” he added.

UAE currency: the story behind the money in your pockets
The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Cinco in numbers

Dh3.7 million

The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown

46

The number, in kilograms, that Swarovski’s wedding gown weighed.

1,000

The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]

50

How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday

3,000

The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.

1.1 million

The number of followers that Michael Cinco’s Instagram account has garnered.

Dubai works towards better air quality by 2021

Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.

The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.

These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.

“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.

“We’re in a good position except for the cases that are out of our hands, such as sandstorms.

“Sandstorms are our main concern because the UAE is just a receiver.

“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”

Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.

There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.

“There are 25 stations in total,” Mr Al Daraji said.

“We added new technology and equipment used for the first time for the detection of heavy metals.

“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”

Silent Hill f

Publisher: Konami

Platforms: PlayStation 5, Xbox Series X/S, PC

Rating: 4.5/5

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THE SPECS

Engine: 3.6-litre V6

Transmission: eight-speed automatic

Power: 285bhp

Torque: 353Nm

Price: TBA

On sale: Q2, 2020

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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The Way It Was: My Life with Frank Sinatra by Eliot Weisman and Jennifer Valoppi
Hachette Books

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

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