OPEC And Its Allies Are Ready To Boost Production, But Here’s Why An Oil Market Recovery Isn’t Guaranteed

After record production cuts in April intended to prop up the market amid a demand crisis caused by the coronavirus pandemic, the world’s largest oil producers areSaudi Arabia, Russia, and the other members of OPEC+ will meet Wednesday to discuss the current market situation and debate future production limits, theover the weekend, adding that most delegates in the organization support loosening restrictions.

As lockdown measures ease across the globe, demand for oil is slowly beginning to rise again as shipping and air travel resume. Oil prices are still down significantly from pre-pandemic levels, however, with the Brent international benchmark priced at about 30% of January levels. The International Energy Agency said Friday that while global demand for oil had recovered strongly in China and India in May, world demand is still projected to decline during the second half of the year before recovering in 2021.

The recent spike coronavirus cases and new lockdowns are creating “more uncertainty”: additional lockdowns could discourage travel and international trade, which would put more downward pressure on prices.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

OPEC chief sees oil market moving closer to balance before key meetingThe oil market is getting closer to balance as demand gradually rises, OPEC's secretary general said on Monday, two days before the group and ally Russia meet to decide whether to ease output curbs from August. If you are wondering why they lockdown at 100 cases and reopen at 10,000 cases and try to send your kids to school, look in this direction. Crooked manipulation oil guts are in Russia Saudi Arabia and America so how did that magically happen Impossible. Low oil prices are here to stay! People are working from home and not allowed to drive to their families and social events. OPEC must adapt to the new reality or die trying to remain stagnant!
Source: Reuters - 🏆 2. / 97 Read more »