(Repeats to fix graphic links)
* OPEC compliance with cuts: here
* Non-OPEC compliance with cuts: here
DUBAI/LONDON, Oct 15 (Reuters) - An OPEC+ technical committee on Thursday discussed higher oil supply as production resumes in Libya along with a weaker demand outlook due to a second wave of coronavirus infections, two OPEC+ sources said.
The Joint Technical Committee, which includes representatives from key OPEC+ producers such as Saudi Arabia and Russia, met to review compliance with its global oil output cuts and to review the oil market.
OPEC+ - producers from the Organization of the Petroleum Exporting Countries and others including Russia - have been reducing output since January 2017 in a bid to balance the market, support prices and reduce inventories.
They are currently curbing production by 7.7 million barrels per day (bpd), down from 9.7 million bpd, and are due to taper their production cuts by 2 million bpd in January.
But a bearish demand outlook and rising supply from Libya mean OPEC+ could roll over existing cuts into next year and delay easing the reductions, OPEC+ sources say.
The group had 102% compliance with its production cuts in September, two OPEC+ sources told Reuters.
At Thursday’s meeting, OPEC+ delegates discussed a slow demand recovery in the fourth quarter of this year, when seasonally it was expected to rise, one of the sources said.
The resumption of oil production from Libya and lack of a vaccine for COVID-19, plus a rise in infections and renewed restrictions to try to contain the pandemic, could mean a downward revision for oil demand, creating a bearish outlook for the market in the coming months, this source said.
The panel discussed a scenario where demand would contract by 10.8 million bpd in 2020 and Libyan production would rise, creating an OECD stocks overhang at 265 million barrels above the latest five-year average in the last quarter of this year, the source said.
For 2021, stocks would be at 301 million barrels above the five-year average in the last quarter, compared with 245 million, 181 million and 173 million in the first three quarters.
Separately OPEC Secretary General Mohammad Barkindo told a conference on Thursday that demand was recovering at a slower pace than expected.
“We have to be realistic that this recovery is not picking up pace at the rate that we expected earlier in the year,” he said. “Demand itself is still looking anaemic.”
OPEC+ is due to meet on Nov. 30 and Dec. 1 to set policy. (Additional reporting by Alex Lawler. Editing by Edmund Blair/Mark Potter/Jane Merriman)
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