OPEC crude oil producers and allies such as Russia, a grouping dubbed OPEC+, meets today to review compliance with oil cuts meant to support oil prices amid the COVID pandemic.
The 23 member states of OPEC+, comprised of OPEC and ten of its oil-producing allies, for the most part delivered on record crude oil production cuts agreed to by the alliance through the month of May, a report shows.
Crude oil experts are left scratching their head in the aftermath of the OPEC+ meeting in Vienna held on March 5 and 6 as most variables of the oil market are left in flux. In a move that has shaken the crude landscape, Saudi Arabia has launched an oil war against Russia by announcing that it will hike oil production 12.3 million barrels per day (mb/d) from April, and has also offered deep discounts to its buyers, potentially swamping an already oversupplied oil market.
OPEC crude oil output has fallen to an eight-year low in September after attacks on Saudi oil plants cut production, deepening the impact of a supply pact and United states sanctions on Iran and Venezuela.
“Overall, the market is in a delicate situation,” Khalid al-Falih told reporters ahead of a ministerial panel meeting of top OPEC and non-OPEC oil producers, including Saudi Arabia and Russia. He said the Organization of the Petroleum Exporting Countries, of which Saudi Arabia is de facto leader, would have more data at its next meeting in late June to help it reach the best decision on output.
The Organization of the Petroleum Exporting Countries (OPEC) fell just short of its production goal in January, as a fresh round of output cuts from the 14-nation producer group got under way. The slight miss comes as the group once again cut its outlook for global oil demand in 2019. OPEC also slightly increased its forecast for supply from the United States and other non-OPEC nations.
Oil imports of India from Iran plunged to their lowest in a year in November with Tehran dropping two places to become only the sixth biggest supplier after New Delhi cut purchases due to the impact of U.S. sanctions, according to ship tracking data and industry sources.