Energy Minister Prince Abdulaziz bin Salman urged, in the first OPEC meeting this year, members of the organization and its allies to preserve the gains made during the past year, stressing the need to wait for concrete results from the Corona vaccine. The minister said that the new surge of the virus could not predict its consequences, calling on OPEC to be vigilant and cautious despite the optimistic market environment in general.
On the other hand, an OPEC document revealed that the OPEC + group of oil producers is considering cutting production by 500,000 barrels per day in February, and three other scenarios include maintaining production at current levels or an increase of 500,000 barrels per day. The document revealed a compensation plan for the OPEC secretariat by January 15, and according to the document, the date of the OPEC + technical ministerial meeting on the second and third of February was set. During yesterday’s dealings, there was no significant change in oil prices, while concerns about fuel demand continue in light of new general isolation measures to combat Covid-19. Brent crude futures for March delivery fell 6 cents, or 0.1%, to $ 51.03 a barrel, while West Texas crude for February delivery reached $ 47.63 a barrel, up by a cent. Fitch Solutions said, “Short-term demand growth is being hampered by a new rise in Covid-19 across North America, Europe and the Middle East, and is likely to fall further over the next several months.” Despite the recent recovery in the market, pressures are still present due to the repercussions of Corona and the slowdown in demand from some major markets. Last April, OPEC agreed to reduce production by 10 million barrels in May and June to support prices, and gradually reduce the reduction to 6 million barrels, with this January, only, but concerns reduced the reduction to 500 thousand barrels.