OPEC and its allies, known as OPEC+, met yesterday to discuss production quotas and potential production cuts to boost oil prices. According to sources, the group considered a new cut on top of the existing 7.7 million barrels per day reduction to combat the ongoing slump in oil prices. However, Saudi Arabia and some OPEC members clashed over the issue of production quotas, with the Wall Street Journal reporting tensions were high as members disagreed on how to balance the market.

With oil prices continuing to slide, OPEC+ producers are weighing the option of further production cuts to ease the oversupply of crude. The ongoing global pandemic has severely impacted demand for oil, leading to an excess in supply and causing prices to fall. Yahoo News reports that, with the prospect of weaker demand in 2021, further cuts are on the table to prevent another price plunge.

The prospect of fresh output cuts was also discussed, with France 24 English reporting that OPEC+ is weighing the option of implementing additional cuts to boost oil prices. The group believes that this is necessary to stimulate the global economy as it recovers from the pandemic. However, whether the cuts will be implemented remains to be seen.

Meanwhile, DailyFX reports that ahead of the meeting, crude oil prices lingered due to uncertainty surrounding production guidance. Many analysts were eager to see how OPEC+ would address the oversupply issue and whether they would announce new production cuts. As of now, oil prices remain volatile with no clear indication of how they will trend in the coming weeks.