Saudi Arabia, Russia and other countries-members of OPEC+ gathered to discuss the increase of oil production since August, and thereby to revise with effect from 1 may record limitations. On Sunday, July 12, according to Bloomberg.
Key OPEC members and allies of the cartel led by Russia plans July 15 to hold talks in the format of the video call. A source in OPEC believes that signs of a return of oil demand to a normal level will push the parties to the transaction to mitigate the current limitations of 2 million barrels a day to 7.7 million.
“I Think that the dynamics of oil prices in the last quarter, and demand set them in a positive way. Although they probably take into account possible problems on the horizon,” — commented on these reports analyst Helima Croft from RBC Capital Markets, who previously warned the market against underestimating second wave of coronavirus and a possible slowing in demand for resources.
At the moment, OPEC+ adheres to the limitations of 9.6 million barrels per day. It is noted that deliveries for August largely already formed taking into account the mitigation of the current decline.
After OPEC meeting+ in early June, world oil prices have returned to levels that were recorded in March, when the collapse of the previous years of the Alliance agreement.
According to the forecast, in the second half of 2020, and 2021-m is expected to reduce global demand for oil. So, in the third quarter of this year the demand will be for 6.5 million barrels per day below last year’s level and 10 percent below previous estimates.