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|05 December, 2018

An OPEC return to 2016 oil quotas could mean a cut of 1.2mln bpd

If OPEC and its allies led by Russia agree to reduce oil output next year by reverting to 2016 production quotas, it would imply an OPEC-only supply curb of at least 1.2mln barrels per day

The OPEC logo is seen outside their headquarters in Vienna, Austria, October 24, 2016.

The OPEC logo is seen outside their headquarters in Vienna, Austria, October 24, 2016.

REUTERS/Leonhard Foeger

LONDON  - If OPEC and its allies led by Russia agree to reduce oil output next year by reverting to 2016 production quotas, it would imply an OPEC-only supply curb of at least 1.2 million barrels per day (bpd), according to Reuters calculations.

Russia's TASS news agency, citing an OPEC source, reported on Wednesday that this was one idea being discussed at this week's meetings of the Organization of the Petroleum Exporting Countries, Russia and other allies. 

If OPEC countries that in October 2018 were pumping above 2016 supply targets reduced output to the agreed levels and members pumping below that quota kept production steady, the total reduction would be 1.2 million bpd, the Reuters calculations based on OPEC figures showed.

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The table below compares OPEC production in October 2018, as reported in OPEC's Monthly Oil Market Report, with output levels agreed in 2016. It excludes OPEC members Nigeria, Libya and Congo Republic which did not have quotas set in 2016.

(Editing by Edmund Blair) ((alex.lawler@thomsonreuters.com; +44 207 542 4087; Reuters Messaging: alex.lawler.reuters.com@reuters.net))