In the midst of a second wave of the Corona virus, some petroleum circles expected that the (OPEC+) group would extend its cuts to oil production from the countries of the group amounting to 7.7 million barrels per day until at least March 2021, in order to cover the weak demand for oil.
But the meeting, which took place a few days ago between OPEC and Russia, resulted in the approval of a modest increase in oil production of 500 thousand barrels per day, starting from January 2021. The increase means that the (OPEC+) group will reduce production by 7.2 million barrels per day as of January 2021, compared to the current reductions of 7.7 million barrels per day.
Observers explain the decision by the positive developments in the vaccines to prevent the virus, which led to the improvement of oil prices at the end of November 2020, which made some producers question the need to maintain the production restriction policy imposed by the group on their countries.
According to Reuters, sources in OPEC+ reported that certain countries, including Russia, Iraq, Nigeria and the UAE, have expressed their desire to supply the market with more oil in 2021.
The group’s countries have not succeeded in reaching a settlement regarding a broader and longer-term production policy for the remainder of the year. 2021. However, the group will hold a monthly meeting to decide plans to increase production in stages with limited quantities that do not exceed 500 thousand barrels per day after January 2021.
It is worth noting that there was no significant change in crude prices after the OPEC + decision, and prices remained at around $ 48 a barrel.