Major Oil-Producing Nations To Discuss Possible Easing Of Production Cuts

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The figures demonstrate the financial pain OPEC was already facing even before the coronavirus pandemic wiped out almost a fifth of global oil demand in the second quarter of 2020, according to S&P Global Platts.

In fact, the secretary general of OPEC said on Monday that he believes that oil markets are moving closer to balance ahead of the group meeting with Russian Federation to decide whether or not to ease production cuts from August.

Saudi Arabia wants to increase oil production by 2 million barrels per day, according to the report.

The analysis highlighted that the decline in OPEC exports was already a problem for the public accounts of oil-producing countries before the Covid-19 pandemic, a disease that sank global demand to unprecedented levels.

Brent crude has more than doubled since April to $42.28 a barrel thanks to the cuts and an easing of virus lockdowns in many countries.

The reason is that Russian Federation, as well as the OPEC, are planning to relax their oil production cuts that were put in place at the beginning of March when the lockdown was imposed.

The Joint Ministerial Monitoring Committee (JMMC) will consider whether the 23-nation alliance should maintain 9.6 million barrels of daily output off the market for another month, or restore some supplies as originally planned, tapering the cutback to 7.7 million barrels.

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Futures in NY fell toward $40 a barrel after closing up 2.4% on Friday.

However, if weak global oil consumption continues amid the rise in new COVID-19 cases, any increase in OPEC+ output could easily cause a plummet in crude prices.

OPEC+, as the group of countries is called, will hold a video conference on Wednesday.

She said OPEC's demand recovery predictions could prove optimistic.

Still, more than 60,500 new COVID-19 cases were reported in the United States on Thursday, a daily record and the highest daily count for any country since the pathogen emerged in China previous year. Under the terms of its agreement, the cuts taper from 9.6 million barrels a day now - roughly 10% of global supply - to 7.7 million a day in August.

Citing statistics, on Friday's commodity market closure, United Kingdom crude settled down 2 per cent higher to $43.24 per barrel, while the US West Texas Intermediate crude futures surged 2.4 per cent to $40.55 a barrel.

Now Saudi Arabia and most participants in the coalition aid a loosening of the curbs, the delegates explained.

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