Oil Prices Held Steady on Ahead of OPEC Meeting

opec oil prices steady energy
Gulf
  • Date: 01-Jul-2021
  • Source: Al Bawaba
  • Sector: Oil & Gas
  • Country: Gulf
  • Who else needs to know?

Oil Prices Held Steady on Ahead of OPEC Meeting




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 output but which ends at the beginning of August.





One option is to increase production by about 500,000 barrels a day in August, and the possibility of locking that into another three-month period of graduated increases.





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