Riyadh begins property acquisition for major road development projects    Saudi minister explores strategic industrial and mining partnerships with top Russian firms    Riyadh's Creative District to welcome Italy's Istituto Marangoni    CMA approves major reforms to ease investment account access for foreign and local investors    Saudi Arabia reaffirms OPEC+ compliance as June crude supply hits 9.35 million bpd    Lithuanian politicians taken to shelters after Belarus airspace violation alarm    EU leaders agree to send delegation to Libya after previous group expelled from country    Armenia and Azerbaijan move closer to peace, pushing Russia out from the South Caucasus    Trump says he will hike tariffs on Canadian goods to 35%    France's Lady Liberty artwork goes viral as a new Statue of Liberty could be in the works    Saudi population reaches 35.3 million in 2024, majority under 65    GASTAT: Industrial Production Index rises by 1.5% in May    Theo Hernández: Al Hilal can compete with Europe's best    Abdullah Al-Qaisoom wins silver at Asian Youth and Junior Weightlifting Championship    Aubameyang's future at Al Qadsiah in doubt after cryptic post comparing Saudi League strikers    Makkah Deputy Emir leads washing of Holy Kaaba    SFDA approves 'Winrevair' for rare pulmonary hypertension treatment    HONOR returns to Esports World Cup as Official Smartphone Partner for 2025 The renewed commitment will see HONOR elevate mobile esports competition with cutting-edge AI technologies and industry-leading hardware    Michael Madsen, actor of 'Kill Bill' and 'Reservoir Dogs' fame, dead at 67    BTS are back: K-pop band confirm new album and tour    Sholay: Bollywood epic roars back to big screen after 50 years with new ending    Ministry launches online booking for slaughterhouses on eve of Eid Al-Adha    Shah Rukh Khan makes Met Gala debut in Sabyasachi    Pakistani star's Bollywood return excites fans and riles far right    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Oil producers meeting to discuss output
Published in The Saudi Gazette on 29 - 11 - 2020

The Organization of Petroleum Exporting Countries (OPEC) is due to host the 180th ministerial conference and the 12th ministerial meeting of OPEC Plus on Monday and Tuesday to discuss prospects of maintaining cut of the oil production.
The oil sector stakeholders are scheduled to hold the sessions via video conference application, pondering possibility of hammering out a new deal whether to keep decrease of the crude output by 7.7 million barrels per day.
Basically on the table is a recommendation of the joint OPEC-non-OPEC ministerial committee to slash the production in a bid to boost markets' stability. The virtual sessions coincide with OPEC's 60th anniversary and fourth anniversary of the coalition, established on Dec. 10, 2016.
OPEC plus crude producers, in April, trimmed the output by 9.7 million bpd, 10 percent of the global demand that fell at the time due to ramifications of the coronavirus crisis.
Sources close to OPEC said Sunday the conferees would seek to capitalize on the noticeable recovery of the oil prices that hit $46 pb, highest level since outbreak of the pandemic late last year.
Participants in the OPEC+ gathering would look into the latest regular report by the organization that predicted demand increase for OPEC crudes next year at a rate of 5.2 million bpd as compared to 2020. In light of this forecast, the decision makers will study duration of the output cut.
Although current price remained short of the producing states' aspiration to see it at the level of $60 pb to be compatible with the price upon which their budgets had been projected, they appeared generally satisfied with the latest price level, considering the unchecked spread of the virus globally.
Observers link the price improvement to the US presidential process, high hopes upcoming mass production of vaccines will curb the contagion along with the forecast such a success will dissuade states' leaders from ordering further lockdowns giving way for restoration of normal life and recovery of industries namely those that require energy, in addition to restoration of regular air transports.
Moreover in this vein, observers allude, as another factor for the prices' reasonable level, to states' latest financial incentives' policies, intended to relieve cash-strapped citizens and jobless; in the shadow of the coronavirus crisis that paralyzed wide sectors of the businesses.
OPEC Secretary General Mohammad Sanusi Barkindo has acknowledged that balancing supply and demand has become harder due to global reserves' growth by a staggering one billion bpd since start of this year.
The crude reserves' glut could have been much bigger had the OPEC+ countries made no significant efforts to maintain the market balance, Barkindo believes.
The producers' commitment to the output cut reached a remarkable and record level of 100 percent in November, according to many observers. Moreover, they believe that the conferees will opt to maintain the current level of the crude production in the first half of the coming year (2021).
Statistics showed that costs of facing the second wave of the virus exceeded USD 20 trillion, equivalent to 20 percent of the global gross product. OPEC noted in its regular report, released last week, that the demand for the OPEC crudes, in 2020, dropped by 200,000 bpd to stand at 22.1 million bpd, 7.2 million bpd less as compared to 2019.
Additionally, the organization predicted in its report that this demand would reach, next year, 27.9 million bpd, some 5.6 million bpd higher than that of 2020. — KUNA


Clic here to read the story from its source.