OPEC+ needs to compensate for oversupply in May to October period

OPEC+, a group of major producers led by Russia and Saudi Arabia, produced more oil in the May to October period, violating the ceiling fixed under the record output cut pact agreed in April to help rebalance the oversupplied oil market. 

The cartel pumped as much as 2.346 million barrels per day (bpd) more than allowed under the pact, versus 160,000 bpd seen in May to September volumes, as noted by oilprice.com. 

In other words, to ensure full compliance with the output cut agreement, major producers now need to take out 2.36 million bpd of supply from the market. 

OPEC+ was set to hike production in January with the global economy showing signs of a rebound in the third quarter. However, with the recent resurgence of coronavirus, the producers are mulling a delay in raising the supply.