OPEC+, which teams OPEC and different producers together with Russia, meet on Monday, a day after OPEC Secretary General Mohammad Barkindo warned OPEC+ specialists of draw back dangers dealing with the oil market.
The on-line assembly of OPEC+ ministers is scheduled to start out at 1330 GMT.
“Amid the hopeful signs, the outlook for the first half of 2021 is very mixed and there are still many downside risks to juggle,” Barkindo mentioned.
“Curbs on social and economic activity remain in place in a number of countries, and there is concern about the emergence of a pernicious new strain of the virus,” Barkindo mentioned.
That pressure, reported in Britain final month, is spreading globally and on Monday British Prime Minister Boris Johnson warned that his authorities can be asserting harder lockdown guidelines.
With benchmark Brent oil futures holding above $50 per barrel, OPEC+ took the chance this month to lift output by 500,000 barrels per day (bpd) because it appears to be like to finally undue cuts that at present stand at 7.2 million bpd.
OPEC+ producers have been curbing output to help costs and scale back oversupply since January 2017, and elevated their cuts to a file 9.7 million in mid-2020 as COVID-19 hammered demand for gasoline and aviation gasoline.
OPEC’s chief Saudi Arabia has recommended a extra cautious method throughout earlier conferences, whereas United Arab Emirates and non-OPEC member Russia have mentioned they like a speedier improve.
“Under the current output terms, surpluses are expected from February until April, before demand recovers from May onwards, so a possible OPEC+ decision to not increase production will keep balances at a manageable level,” mentioned Bjornar Tonhaugen from Rystad Energy.
Brent costs rose above $53 per barrel on Monday, touching multi-month highs on expectations that OPEC+ will maintain output regular in February. They later trimmed good points.