ANL 12.80 Decreased By ▼ -0.20 (-1.54%)
ASC 15.02 Increased By ▲ 0.20 (1.35%)
ASL 15.52 Decreased By ▼ -0.23 (-1.46%)
AVN 104.40 Decreased By ▼ -3.65 (-3.38%)
BOP 8.40 Decreased By ▼ -0.03 (-0.36%)
CNERGY 6.13 Decreased By ▼ -0.13 (-2.08%)
FFL 8.90 Decreased By ▼ -0.20 (-2.2%)
FNEL 8.38 Decreased By ▼ -0.27 (-3.12%)
GGGL 12.90 Decreased By ▼ -0.32 (-2.42%)
GGL 19.50 Decreased By ▼ -0.89 (-4.36%)
GTECH 9.07 Decreased By ▼ -0.33 (-3.51%)
HUMNL 6.71 Decreased By ▼ -0.04 (-0.59%)
KEL 3.07 Decreased By ▼ -0.07 (-2.23%)
KOSM 4.07 Decreased By ▼ -0.08 (-1.93%)
MLCF 33.80 Decreased By ▼ -0.50 (-1.46%)
PACE 3.98 Decreased By ▼ -0.15 (-3.63%)
PIBTL 7.17 Decreased By ▼ -0.06 (-0.83%)
PRL 14.08 Decreased By ▼ -0.36 (-2.49%)
PTC 8.55 Decreased By ▼ -0.11 (-1.27%)
SILK 1.27 Decreased By ▼ -0.05 (-3.79%)
SNGP 33.76 Decreased By ▼ -0.40 (-1.17%)
TELE 17.05 Decreased By ▼ -0.69 (-3.89%)
TPL 11.80 Decreased By ▼ -1.17 (-9.02%)
TPLP 26.65 Decreased By ▼ -1.87 (-6.56%)
TREET 38.40 Decreased By ▼ -1.25 (-3.15%)
TRG 77.20 Decreased By ▼ -5.65 (-6.82%)
UNITY 27.49 Decreased By ▼ -0.36 (-1.29%)
WAVES 15.43 Increased By ▲ 0.33 (2.19%)
WTL 2.13 Decreased By ▼ -0.08 (-3.62%)
YOUW 7.34 Decreased By ▼ -0.43 (-5.53%)
BR100 4,610 Increased By 11.6 (0.25%)
BR30 17,620 Increased By 286.2 (1.65%)
KSE100 44,955 Increased By 67.3 (0.15%)
KSE30 17,738 Increased By 42 (0.24%)

coronavirus
Coronavirus
VERY HIGH
Source: covid.gov.pk
Pakistan Deaths
29,137
1524hr
Pakistan Cases
1,386,348
5,19624hr
Sindh
531,008
Punjab
467,698
Balochistan
34,032
Islamabad
120,813
KPK
186,537
Markets

OPEC+ meeting to set February production levels

  • On April 20, WTI crude collapsed to minus $40.32 per barrel -- meaning producers paid buyers to take the oil off their hands.
04 Jan, 2021

LONDON: Members of the OPEC group of oil producers and their partners will meet via videoconference Monday to decide production levels for February, which it hopes to continue boosting.

The OPEC+ ministerial meeting comes after the Covid-19 pandemic tanked the market for crude in 2020.

Despite a slight recovery of prices towards the end of last year, the 13 members of the Organisation of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, and their ten allies, led by Russia, are still suffering under a highly volatile market.

After their last video conference summit, held from November 30 to December 3, the OPEC+ members agreed to raise production levels by half a million barrels per day in January.

At the same meeting, OPEC+ agreed to meet at the beginning of each month to decide on any adjustments to production volumes for the following month.

That agreement "paved the way for a gradual return of 2 million barrels per day to the market over the coming months," OPEC's general secretary, Mohammed Barkindo, said on Sunday.

Stumbling blocks

OPEC members typically meet twice a year at the cartel's headquarters in Vienna, but last year, summits were scheduled more frequently to maintain a strong influence on the oil market amidst the pandemic.

Despite demand remaining uncertain, analysts have said that OPEC+ demonstrated that it can manage the market as the North Sea Brent Crude and West Texas Intermediate (WTI) crude both ended the week around the $50 per barrel level.

Though far lower than the prices seen at the start of 2020, crude was well up on the lows seen last year, particularly in March, when Moscow and Riyadh embarked on a brief but intense oil price war that caused prices to plummet.

Russia and Saudi Arabia are respectively the second and third biggest oil producers in the world after the United States.

On April 20, WTI crude collapsed to minus $40.32 per barrel -- meaning producers paid buyers to take the oil off their hands.

Relations between the two oil giants have eased since then, with the Russian and Saudi energy ministers meeting in mid-December in a display of unity.

It remains difficult, however, to predict the evolution in demand as governments begin rolling out vaccination programmes against the coronavirus.

Despite the heft of the OPEC+ countries, countries outside the system have a major impact on the oil market; principally the United States which is still producing 11 million barrels of crude per day.

Comments

Comments are closed.