OPEC+ will convene a videoconference from 1 p.m. London time to discuss the next phase of production policy, according to CNBC. The meeting comes when OPEC Secretary General Mohammed Barkindo has called for caution in loosening production quotas that could lead to space oil capacity.
Analysts expect OPEC+ to reverse some of the output cuts made last year, but speculations are rising that the group may decide against increasing supply.
OPEC+ initiated production cuts last year and Covid-19 vaccines have helped crude futures to soar to pre-virus levels in recent weeks.
Saudi Arabia has encouraged OPEC allied partners to remain “extremely cautious” on production policy, warning against complacency in pushing for full oil market recovery.
Non-OPEC leader Russia has hinted at plans to increase supply, claiming that the market has already balanced.
OPEC Secretary-General has warned the Covid crisis and the uneven distribution of vaccines could lead to an uneven recovery, posing a challenge to oil demand.
Oil futures are currently gaining. CL! is up 0.21%