Crunch talks to set oil output for rest of year

Crunch talks to set oil output for rest of year

DUBAI: Oil prices held steady on Wednesday ahead of a crucial meeting of producers that could set the tone of the global crude market for the rest of the year. Brent crude traded just above $75 as ministers from the 23-strong OPEC+ alliance, led by Saudi Arabia and Russia, prepared for one of the most important meetings for many months. They will decide on Thursday whether to increase production against a background of improving demand as the world climbs out of the pandemic recession. Oil expert Robin Mills, chief executive of the Qamar Energy consultancy, told Arab News: "The market and forecasts are certainly signaling the need for more supply." But Prince Abdul Aziz bin Salman, the Saudi Energy Minister, is believed to favor a cautious approach as the global market approaches rebalancing after the volatility of last year, with new COVID-19 variants threatening economic recovery in several countries. Prince Abdul Aziz told a US investment forum last week that some forecasts for economic recovery and oil demand growth could turn out to be "excessively optimistic." OPEC+ is believed to be looking at a number of scenarios for the rest of the year, following a three-month deal that gradually raised