Sources: Saudi Arabia wants OPEC+ to deepen oil cuts due to Aramco IPO - Reuters

Reuters quoted two unnamed sources with the knowledge of the matter, saying that the OPEC and its allies (OPEC+) is considering deepening the current set of output cuts by at least until June next year, as Saudi Arabia wants to deliver a positive surprise to the market before the listing of Saudi Aramco.

One of the sources said: “They (the Saudis) want to surprise the market.”

Another two sources added: “The latest OPEC analysis, drawn up by OPEC’s Economic Commission Board (ECB), showed a large oversupply and build-up in inventories in the first half of 2020, if not additional cuts were made.”

The deal being discussed by OPEC+, would be to add at least 400,000 barrels per day (bpd) to existing cuts of 1.2 million bpd, Reuters noted.