OPEC planning to reduce oil supply glut without production cuts and freezes – Sources

By FXStreet At its Doha meeting to be held on April 17 to discuss oil output cuts and freezes, OPEC has planned to table two proposals drafted at its headquarters, OPEC sources said on Friday.

OPEC sources said Plan A looks to replace all steel oil barrels with plastic barrels, predominantly made from crude oil. It is said that there are nearly 1 trillion steel oil barrels in circulation and using crude oil made plastic barrels to replace them would account for a draw of supplies of around 25-30%.

Plan B suggests increasing the barrel size from the standard 42 gallon (US measure) to 60 gallons. The near 50% increase would reduce the total world stock count by around the same amount over time.

OPEC spokesman Avab-yg B’arul was on the wires and noted that the draft plan has gained large support from both OPEC and Non-OPEC producers ahead of the Doha meeting.

Meanwhile, both crude benchmarks remain heavy, with the US oil down -1.67% to $ 37.71 and Brent drops -1.56% to $ 39.71.
For more information, read our latest forex news. …read more

Source:: FX Street