- PEC+ will be making a decision on April output, with many expecting the cartel and its allies will bump production higher from April. Saudi Arabia is, however, urging caution on supply increases (at least its doing so publicly), while Russia is signalling it wants to push output higher.
Via Platts now, a little more:
- Many analysts, including OPEC’s own, have concluded the market can likely absorb a 1.5 million b/d production increase without tipping into surplus, but releasing all that crude at once risks spooking traders and unraveling the price rally. Maintaining the cuts, however, could overheat the market and erode still fragile oil demand.
- Potentially on opposing sides once again are Russia, which has consistently pushed to pump more, and Saudi Arabia, whose energy minister Prince Abdulaziz bin Salman has urged the alliance to go slow.
Here is the link to Platts for much more (may be gated)
The background to the meeting is an improving picture for oil demand:
- Fiscal stimulus
- coronavirus vaccine rollout
- commodities on a price upswing
- tightening oil market
- Texas deep freeze shut-in US production temporarily