The OPEC + oil alliance decided on Thursday that pressure from inside and outside would increase further from May as more barrels could be released into the market and crude prices could be kept.
The 24-member body’s decision came before Saudi Energy Minister Abdulaziz bin Salman warned allies, including OPEC and Russia, that the recovery of crude was still wreaking havoc around the world.
“As long as the evidence of recovery is undeniable, we should maintain this vigilant position,” Prince Abdulaziz, son of the Saudi king, told reporters and ministers ahead of the official virtual assembly of oil officials.
Nevertheless, Russian Deputy Prime Minister Alexander Novak said OPEC + had to make sure the market was not “heated” by the introduction of anti-virus vaccines.
Consumer countries are also watching OPEC + closely, as manufacturers such as India are wary of tightening output that will only push up prices.
U.S. Energy Secretary Jennifer Granholm added another layer of uncertainty to the group’s decision. On Wednesday, he phoned Prince Abdulaziz and stressed the importance of “affordable” energy.
Some analysts took His comments on Twitter An appeal by the state to keep an eye on the price of crude oil which in turn affects the price of US petrol. The sharp fall in U.S. production last year reminded American operators of OPEC’s impact on the oil market and raised demands from former Saudi President Donald Trump to cut supplies to boost prices.
An OPEC spokesman said producers would increase output by 35,000 barrels a day in May, another 350,000 b / d in June and about 441,000 b / d in July. Some analysts had hoped that the countries would see additional growth.
Prince Abdulaziz told reporters the decision, contrary to the tone of his earlier comments, was not based on any pressure from the new Beadon administration. “I can assure you that the oil market, the price of oil. . . OPEC, anything related to OPEC +. . Not even mentioned [on the Granholm call], “He added.
He said small increases were “conservative measures” and “warnings are still there”.
Outside the Russian-led carpet, OPEC and its allies agreed to cut a record 9.7 million barrels a day in April 2020. The OPEC + group gradually unbounded these resistances to about 7 million b / d, with manufacturers meeting monthly to determine how much oil should be released into the market.
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OPEC agreed in December that it would increase output to 500,000 b / d per month, but it delayed further growth as it reduced uncertainty about cost increases after increasing production in January.
The state implemented a volunteer cut of about 1m / b house of its own to further strengthen the market. In the coming months, Saudi Arabia will increase production by 250,000 in May, 350,000 in June and 400,000 in July.
Optimism about the impact of vaccines on the global economy has helped crude prices return to ড 70 a barrel. Its price Brent Crude This is followed by the European government at $ 4 per barrel. Impose new restrictions and lockdowns New forms create uncertainty in new ways as well as to control the spread of the virus.
“The deal is conducive to oil prices, which should help keep oil demand rising as well as avoid a sharp upward trend,” said consultant Wood McKenzie.