Pioneer Natural Resources is putting drilling rigs back to work in the Permian Basin oil field, but plans for oil production growth of zero to 5% while demand recovers, CEO Scott Sheffield says.
Following a sharp drop in crude prices in early 2020 as the coronavirus pandemic hit demand, Norway in April announced it would slash oil output for the final seven months of the year.
After consultations on Nov. 29 failed to reach agreement, sources said Russia suggested a possibility for OPEC+ to start increasing output by 500,000 bbl/d each month from January.
Oil prices rebound to new levels, Stratas Advisors says in its latest oil price forecast.
OPEC and allies led by Russia have yet to find a consensus on oil output policy for 2021, after an initial round of talks on Nov. 29 and ahead of crucial meetings on Nov. 30 and Dec. 1, four OPEC+ sources told Reuters.
Oil prices were mixed on Friday but remained on course for a fourth straight week of gains ahead of an OPEC+ meeting early next week.
Oil slipped from seven-month highs on Nov. 26 as signs of growing supplies helped to halt a rally driven by optimism that COVID-19 vaccines will revive fuel demand.
OPEC and allies including Russia are leaning towards delaying next year’s planned increase in oil output to support the market during the second wave of COVID-19 and rising Libyan output, despite a rise in prices, three sources close to OPEC+ said.
The world witnessed the long-waited announcements related to successful trial results of several vaccines, which are the preliminary requisite for quick regulatory approvals that will then translate into mass production and distribution.