OPEC + discusses scenario of gradual rise in oil production

OPEC officials have held a series of telephone talks with OPEC + members to discuss the delay in coronavirus vaccination and the risk of a market failure, as well as a scenario of a gradual increase in oil production. Still, no consensus has been reached, Report states citing RIA Novosti.

“Negotiations have been held with several union members. The talks reviewed the market situation, the sharp decline in prices, and the coronavirus vaccination rate. There were concerns about the ratio and possible shortages in the market. All potential risks have been weighed up,” said the interlocutor of the agency.

Asked whether OPEC + will debate a gradual increase in oil production, the source said: “Yes, it has been discussed. However, this does not mean that the decision has already been made. There is no consensus. Everything will be clear at the next meeting.”

The agreement between OPEC and non-OPEC countries, including Russia, began in 2017 but was renewed in 2020. Since May, the union has cut 9.7 million barrels of oil production due to declining demand caused by the coronavirus pandemic.

Restrictions were adjusted as demand recovered, reaching 7.05 million barrels per day in March, 6.9 million barrels in April, and 8.05 and 7.9 million barrels, respectively, taking into account the voluntary reduction of Saudi Arabia.

The next conference of the OPEC + Joint Ministerial Monitoring Committee (JMMC) will take place on March 31, and the meeting of the entire OPEC + alliance is scheduled for April 1.