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OPEC and allied oil cartel members including Russia postpone meeting to determine whether to restore more oil production next month
FRANKFURT, Germany – Members of the OPEC oil cartel and allied countries, including Russia, adjourned a meeting on Monday to determine whether to further increase production next month as the pandemic continues to undermine demand energy and create uncertainty about when the recovery might occur.
The oil-producing countries were to meet again on Tuesday. In December, the group decided to re-inject a modest 500,000 barrels per day into the oil market, and to review production monthly with the aim of restoring 2 million barrels per day.
OPEC and the non-member countries that agreed to cooperate with it last year imposed a production cut of 7.7 million barrels per day to prevent prices from collapsing during the economic crisis caused by the pandemic.
Saudi Energy Minister Abdulaziz bin Salman opened the meeting online on Monday saying demand remains “fragile” for transport fuels, including for planes, and that the cartel must act with caution even then. that the deployment of vaccination programs gives hope for a return to normal. travel habits. He said: “I want to urge caution even in this generally optimistic environment.”
OPEC, based in Vienna, faces conflicting pressures. Raising production would increase the incomes of producing countries which have seen their budgets hit hard by falling prices, but pumping too fast could undermine the modest rebound in prices. Oil prices fell 52 cents Monday to $ 48.00 a barrel on the New York Mercantile Exchange.
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