Authored by Cyril Widdershoven via OilPrice.com,

OPEC+ has finally managed to reach a production cut agreement after several days of increased internal dissent. In its statement, the group reiterated a continued commitment to a stable market, the mutual interest of producing nations, the efficient, economic and secure supply to consumers, and a fair return on invested capital.

The production cut agreement that has been in place since April 12 2020 has been slightly adjusted. In light of the current oil market fundamentals and the outlook for 2021, the group has agreed to reconfirm the existing commitment under the DoC decision to gradually return 2 million bpd to the market. Members have decided to voluntarily adjust January production by 0.5 million bpd from 7.7 million bpd to 7.2 million bpd.

At the same time, OPEC+ will be holding monthly OPEC and non-OPEC ministerial meetings starting in January 2021 to assess market conditions and decide on further production adjustments for the following month, with further monthly adjustments being no larger than 0.5 million bpd.