OPEC+ maintains caution on output despite market recovery

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LONDON - The OPEC group of oil producers and its allies decided after talks on Thursday to allow only a slight rise in crude output despite a recovery in prices, amounting to less than a third of the

output boost market observers had predicted.

Speaking at a press conference after the meeting, Saudi Energy Minister Prince Abdelaziz bin Salman insisted the bloc would be "not furious, not fast" when it comes to relaxing the cuts. "OPEC+ took the market by surprise when it decided to roll over its quota, saying rather that than anticipate a demand recovery, the group would wait to see it actually recover," said Ann-Louise Hittle from the Wood Mackenzie consultancy.

"Today's decision is clearly a positive outcome for oil prices," said analyst Fawad Razaqzada at Thinkmarkets. At the start of the closed-door meeting, Prince Abdelaziz had said: "At the risk of sounding like a stuck record -- I would once again urge caution and vigilance" in the face of continuing global economic uncertainty.

The speed at which demand will return remains subject to several factors, not least the success of the vaccination programs which have got off to a shaky start in some countries.

 

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