How OPEC Sees The Oil Market In 2021

How OPEC Sees The Oil Market In 2021

OPEC Secretary General Mohammed Sanusi Barkindo (L) and Saudi Arabia's Energy Minister Prince ... [+] Abdulaziz bin Salman (R) attend an Opec-JMMC meeting in the UAE capital Abu Dhabi. (Photo by KARIM SAHIB / AFP) (Photo credit should read KARIM SAHIB/AFP via Getty Images)



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Last week the Organization of the Petroleum Exporting Countries (OPEC), in conjunction with some Russia-led oil producers, agreed to increase oil output by 500,000 barrels per day (BPD) in January. The oil markets rallied, because there was some concern that OPEC could increase production by 2 million BPD.

There was reportedly a lot of disagreement among OPEC members prior to the announced agreement. The United Arab Emirates reportedly pushed hard for a larger production increase, which it argued the global oil market could absorb.

The global oil markets have rallied over the past six weeks, driven primarily by news that vaccines will soon be available to fight the Covid-19 pandemic. A potential end to the pandemic offers some hope of recovery in global oil demand that has plummeted since the start of the pandemic.



OPEC members certainly want to take advantage of this