OPEC, Russia and their allies will stick to plans for a phased easing of oil production restrictions from May to July amid upbeat forecasts for a recovery in global demand and despite surging coronavirus cases in India, Brazil and Japan.
The group known as OPEC+ ditched plans to hold a ministerial meeting on Wednesday, four OPEC+ sources said, following Tuesday’s meeting of ministers who are members of a market monitoring panel.
For more coronavirus news, visit our dedicated page.
The panel decided to stick to policies broadly agreed at a previous April 1 meeting of OPEC+, Russian Deputy Prime Minister Alexander Novak said after the talks.
He said the next OPEC+ ministerial meeting was scheduled for June 1 to review output levels for July and August. An OPEC+ statement also confirmed the June 1 date for the next meeting.
OPEC+, which is responsible for more than a third of global production, has cut output by around 8 million barrels per day (bpd), equivalent to over 8 percent of global demand. The reduction includes a 1 million bpd voluntary cut by Saudi Arabia.
At the April 1 meeting, the group agreed to bring 2.1 million bpd back to the market from May to July, easing cuts to 5.8 million bpd.
In a report by OPEC+ experts, the group forecast global oil demand in 2021 would grow by 6 million bpd, after falling 9.5 million bpd last year.
But the group said that, even though more than 1 billion COVID-19 vaccine doses had been administered globally, it was concerned that surges in new virus cases in India, Brazil and Japan might derail recovering demand for crude.
Oil prices rebounded on Tuesday after falling the previous session, with gains capped by growing concern about fuel demand in India, the world’s third-biggest crude importer.
The OPEC+ report said it expected commercial oil stocks to reach 2.95 billion barrels in July, taking them below the 2015-2019 average, and expected them to remain below that average for the rest of the year.
It said it saw stocks at about 70 million barrels below the average for the whole of 2021, a more optimistic outlook than its previous forecast of 20 million barrels below the average.
Oil prices near $66 in rebound ahead of OPEC+ meeting, amid India COVID concernsOil rebounded to $66 a barrel on Tuesday ahead of a meeting of producer group OPEC+ to discuss oil output policy amid concern India’s coronavirus ... Energy
OPEC+ panel keeps oil demand forecast, but worried by coronavirus surgeThe OPEC+ joint technical committee (JTC) has kept its forecast for growth in global oil demand this year, but is concerned about surging COVID-19 ... Energy
Russia’s Novak says OPEC+ may confirm or tweak its plans at meeting next weekRussian Deputy Prime Minister Alexander Novak said on Wednesday that a OPEC+ meeting of oil producers next week may confirm or tweak output plans ... Energy
Sinopec to develop Iraq's Mansuriya gas field: MinistryChina’s Sinopec has won a deal to develop Iraq’s Mansuriya gas field near the Iranian border, the oil ministry said on Tuesday.For the latest ... Energy
OPEC raises 2021 oil demand growth forecast on hopes COVID-19 impact subsidesOPEC on Tuesday raised its forecast for growth in world oil demand this year on hopes the pandemic will subside, providing help for the group and its ... Coronavirus
Saudi energy minister confident that OPEC+ made right output decisionSaudi Arabia remains confident that the OPEC+ agreement to increase output over the next three months was the right move, said its energy ... Energy