OPEC and Russian Federation are expected to ease their supply cuts to 7.7 million bpd as global oil demand has recovered and prices have bounced back, OPEC+ sources have told Reuters. Visit MarketWatch.com for more information on this news.
In fact, the secretary general of OPEC said on Monday that he believes that oil markets are moving closer to balance ahead of the group meeting with Russian Federation to decide whether or not to ease production cuts from August. OPEC+ members will meet virtually on Wednesday (15 July) to discuss policy.
OPEC, in its 2020 Annual Statistical Bulletin released on Monday, said the country's oil export revenue fell to $45.11bn in 2019 from $54.51bn in 2018.
"This assumes that COVID-19 is contained, especially in major economies, allowing for recovery in private household consumption and investment, supported by the massive stimulus measures undertaken to combat the pandemic", OPEC said.
American benchmark West Texas Intermediate (WTI) was at $39.59 a barrel at the same time for a 1.27% loss after ending the previous day at $40.10 per barrel.
Oil prices were little changed on Monday after falling earlier as a record daily rise in global coronavirus cases boosted concerns that demand could fall again, while a producer meeting this week was expected to recommend an increase in output, as reported by Reuters. Below a Saudi proposal, the so-identified as OPEC As well as coalition would unwind its present curbs by 2 million barrels a working day to 7.7 million barrels a day, the delegates mentioned.
Meanwhile, the panel that reviews the OPEC+ deal will consider whether the alliance should keep 9.6 million barrels of daily output off the market for another month, or taper the cutback to 7.7 million barrels as originally planned.
Oil prices collapsed this year after global demand fell by a third when governments imposed lockdowns to stop the spread of the virus.
OPEC cut its production by 1.86 million bpd, or six per cent, last year, while non-OPEC output grew by 1.3 million bpd, or 2.9 per cent, the report showed.
It was the first report in which OPEC assessed oil markets next year.
"It's all about risk appetite and the hope of continued demand growth here", said Bart Melek, global head of commodity strategy at TD Securities.
Demand in big oil importing countries like India and China is important for oil producers as it would determine how much oil the world would guzzle.