SULAIMANI (ESTA) — Oil prices extended losses on Thursday as producers including Saudi Arabia and Russia locked horns over the need to extend record output cuts set in place in the first wave of the coronavirus pandemic.
Brent crude was down 18 cents, or 0.37%, at $48.07 a barrel by 0604 GMT, while U.S. oil was down 25 cents, or 0.55%, at $45.03 a barrel.
OPEC+, a grouping including the Organization of the Petroleum Exporting Countries (OPEC), Russia and allies are resuming discussions on Thursday to agree on policies for 2021 after earlier talks produced no compromise on how to tackle weak oil demand amid a new COVID-19 wave.
The grouping had been widely expected to roll over oil cuts of 7.7 million barrels per day (bpd), or 8 percent of global supplies, at least until March 2021.
But after hopes for speedy approval of anti-virus vaccines spurred a rally in oil prices at the end of November, some producers questioned the need to tighten oil policy, which is supported by OPEC leader Saudi Arabia.
“Any sign that the group is struggling to reach an agreement could weigh on prices,” Reuters quoted ANZ Research as saying.
