At least four members of OPEC+ has expressed their favor to a proposed extension of the current production cuts which has been agreed upon by OPEC+ since April of this year. Among the four is Iraq itself which has long been reported to be against any extension to output cuts though they have repeatedly denied it.
Saudi Arabia, Iraq, Algeria and Russia all backed the extension citing the current perilous situation due to the resurgence of Covid-19 cases. The situation might be more dire than what it seems since there were reports that the group is considering even deeper oil production cuts.
From a Wall Street Journal report Saudi Arabia, along with several other countries, were not just citing the need to extend the agreed 7.7 million barrels per day (bpd) cut but to impose higher output cuts as well. The basis is the latest slide in the price of oil that according to them has the makings of a longer trend.
If not for Libya's fast increasing oil production that already hit 800,000 bpd just this month, the cartel would have no need to require deeper cuts than what they have already agreed upon. The current price of oil, although just half of what they would normally require to balance their economy, is both acceptable and manageable for Saudi Arabia and the rest of the Middle East producers. However, with Libya in the picture the call to implement further and deeper cuts seems to be not only in the offing but urgently needed.