Major oil-producing countries such as Saudi Arabia and Russia continue to reduce production on a large scale due to sluggish demand for crude oil due to the new coronavirus, but crude oil prices are on the rise next year due to expectations for the spread of vaccines. We have decided to raise the production volume in January a little more than now.
OPEC (Organization of Petroleum Exporting Countries) led by Saudi Arabia and non-member oil producing countries such as Russia held an online meeting on the 3rd to decide the production of crude oil next year.
In May, these oil-producing countries decided to collaborate to reduce production in order to support crude oil prices, which had fallen sharply due to the spread of the new virus, and the scale of production cuts is currently in global demand. We are aiming for 7.7 million barrels per day, which is about 8% of the total.
At the meeting, it was agreed to reduce production in January next year by slightly reducing the scale to 7.2 million barrels per day and increasing production by 500,000 barrels per day.
Oil-producing countries are expected to continue their slump in crude oil demand due to the re-expansion of infections in Europe and other countries, so they have been making adjustments to continue large-scale cooperative production cuts next year.
However, crude oil prices have recently been on the rise due to rising expectations for the spread of vaccines, and as a result, production has recovered slightly.
On the other hand, with regard to production volume after February, the outlook for demand remains uncertain, so we will make a careful decision in monthly discussions while keeping an eye on the movements of economic activities in each country.
Crude oil prices are on the rise due to expectations for vaccine development for the new corona
Crude oil prices have been on the rise since November due to expectations for vaccine development for the new coronavirus.
WTI futures prices, which are an international indicator, have been hovering in the $ 50 to $ 60 range per barrel for the past few years, but have plummeted due to the spread of the new virus.
The supply-demand relationship is a major factor in the price structure of crude oil, but due to the economic downturn caused by the new virus, on April 20, 1 barrel = -40 dollars, which was an abnormal situation where there were virtually no buyers. I fell into it.
The negative price was temporary, but it continued to be sluggish.
Nevertheless, from the beginning of November, crude oil prices began to rise as stock prices rose sharply due to expectations for vaccine development.
The view is that if the economy recovers, the demand for crude oil will also pick up.
As of the 3rd, 1 barrel = mid- $ 45, which has returned to the level at the beginning of March.