JAKARTA (TheInsiderStories) - Organization of Petroleum Exporting Countries and allies (OPEC+) trimmed its forecast on global oil demand to average 96.05 million barrel per day (bpd), or down 110,000 bpd from the initial forecast, caused the impact of extended lockdowns. Last year, the cartel cut supply by 9.7 million bpd last year to support the market and agreed to pump an extra 500,000 bpd in January under a plan.
In the monthly report, the block also revised down non-OPEC supply growth from 850,000 bpd to around 650,000 bpd and output from America would decline amid the higher oil prices. While, Iraq’ oil minister, Ihsan Abdul Jabbar, rated the oil cartel is unlikely to change its production policy at next month’ meeting. He rated, the biggest change will come from Saudi Arabia, which will likely cuts of one million bpd after March.
Then, said the minister, Iraq will pump 3.6 million bpd in this month if the Kurdistan regional government complies with Iraq wishes and cuts production by 200,000 bpd. Even if Kurdistan fails to make the cuts, the country could still produce less than the OPEC cap, he adds.
Jabbar predicted the crude prices will trade betwee US$58 to $63 a barrel during the year. Earlier in the 26th Joint Ministerial Monitoring Committee (JMMC) meeting on Feb. 3, the producers emphasized the ongoing positive contributions of the Declaration of Cooperation in supporting a rebalancing of the global oil market in line with the historic decisions taken on April, 12, 2020 to adjust downwards overall crude oil production.
The organization noted, with gratitude, the significant additional voluntary supply adjustment made by Saudi Arabia, taking effect on Feb. 1, 2021 for two months, exemplifying its leadership, and the need for a flexible and pre-emptive approach by all members. The OPEC+ have adjusted oil production down by a cumulative 2.1 billion bpd, stabilizing the oil market and accelerating the rebalancing process.
Since 2018, the producers has predicted the demand for world oil will decline until 2023, even though energy demand is getting higher amid the global economic expansion. The fall in demand for was caused by the strong oil supplies from non-OPEC countries, especially oil supplies from the United States.
The news from OPEC has bring US crude futures fell by 0.8 percent to $58.22 a barrel on profit-taking after a sharp rally. Brent crude oil also down by 0.9 percent to $60.93 a barrel compared to prior day.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
