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OPEC + continues to negotiate February oil production levels

by Bunkerist
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Oil producers continue the debate on policy Tuesday afternoon, after talks on February supply levels paused. Russia is leading calls for higher production, and others suggest keeping production the same amount or even reducing it due to novel coronavirus lockdowns.

Negotiations will resume at 1430 GMT after the OPEC + group, which unites OPEC and other manufacturers, including Russia, failed to find a compromise on Monday.

OPEC + producers have been restricting production since January 2017 to boost prices and reduce oversupply, and saw a record 9.7 million barrels a day in mid-2020 as COVID-19 cut demand for gasoline and aviation fuel.

OPEC + sources said Russia and Kazakhstan supported increasing production by 0.5 million barrels a day, while Iraq, Nigeria and the United Arab Emirates suggested to keep production stable.

The meeting highlights the risks of a decline in demand and emphasizes that re-enforcing COVID-19 containment measures across continents, including total lockdowns, will reduce the recovery in oil demand in 2021.

Despite an overall optimistic market environment, OPEC + needs to be careful, as fuel demand remains fragile and coronavirus variants cannot be predicted.

New variants of the coronavirus, first reported in the UK and South Africa, have since emerged in countries around the world.

While Brent oil futures remained above $ 50 a barrel, OPEC + made the decision to increase production by 0.5 million barrels in January, ultimately trying to ease the cuts that currently stand at 7.2 million barrels.

Brent on Tuesday rose 2% to over $ 52 a barrel.

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