Two well-informed sources told Reuters that the group, which includes "OPEC" (OPEC) and its allies, intends to hold its next meeting tomorrow, Sunday;
To decide on production policy.
Despite the decline in global oil prices during the past week;
Almost everyone agrees on the world's need to increase the supply of crude oil in the markets to meet the increasing demand in light of the economic recovery from the repercussions of the Corona virus pandemic.
While almost everyone agrees on the need to allow the oil-producing countries of the "OPEC Plus" (OPEC +) group to increase their production to achieve balance in the market in the coming months, there is less consensus among countries regarding the additional amount that can be pumped into the markets.
The International Energy Agency, the US Energy Information Administration and the Organization of the Petroleum Exporting Countries (OPEC) agree that global demand for oil will continue to grow until at least the end of next year 2022.
The three institutions also believe that global oil consumption will exceed by the end of next year its levels in 2019 before the outbreak of the Corona pandemic, and then continue to rise.
But there is disagreement about the path consumption will take to reach this point, according to Julian Lee, an economist specializing in oil markets.
At the same time, the three institutions believe that the growth rate of oil demand will decline to pre-pandemic levels, with the effect of the significant decline in demand fading
during the past year 2020;
Due to the Corona pandemic, which is currently reflected in the annual comparison figures.
After the "OPEC Plus" countries succeeded in firmly adhering to the production quotas established during the first stage of economic recovery, they need to show the same amount of cohesion in the next stage.
So far, the grouping of 23 oil countries, led by Saudi Arabia and Russia, has to;
Dealing with the economic recovery, which came slower than expected when it agreed in April 2020 to cut production sharply, which necessitated it to postpone allowing additional quantities to be pumped into the markets, and Saudi Arabia volunteered to reduce its production by about one million barrels per day months ago.
The original agreement between the “OPEC Plus” countries ruled out any increases in production until the end of this agreement at the end of April 2022;
But this situation will lead to a severe shortage of crude supplies in the world, with the erosion of most of the huge stocks that consuming countries built during the period of the collapse in consumption at the height of the Corona pandemic last year.
During the "OPEC Plus" meeting in early July; Passing an agreement on a gradual increase in production as of next August stumbled when the United Arab Emirates objected to a Saudi proposal to extend the agreement until the end of next year 2022. production.