Opec expected to extend oil output cuts as it waits on Trump

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Opec expected to extend oil output cuts as it waits on Trump
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Producer group likely to watch US president-elect’s plans to impose sanctions against Iran and Venezuela, say analysts

Oil cartel Opec+ is expected to extend current production cuts when it meets on Thursday, as it waits to see how US president-elect Donald Trump imposes oil sanctions on Iran and Venezuela. The wider Opec group, led by Saudi Arabia and Russia, is currently holding back almost 6mn barrels per day from the market, almost 6 per cent of global supply, after making a series of cuts to shore up prices.

One analyst, who asked not to be named, said Saudi Arabia was keen not to be perceived as being too eager to fill the gap left, if sanctions on Iranian oil prove to be successful. “They will wait until the market makes it clear that it needs oil,” the analyst predicted. A further delay will give Opec+ time to watch whether Chinese oil demand picks up as the government tries to stimulate the country’s economy.

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