By Adedapo Adesanya
The Organisation of the Petroleum Exporting Countries (OPEC) and its allies (POEC+) are likely to hold their next meeting to set oil policy on January 4.
It was reported by international media that two sources close to the group made the disclosure.
OPEC+ agreed last week to raise oil output by 500,000 barrels per day next month and to hold monthly meetings starting from January 2021 to decide on further production adjustments that will add not more than 500,000 barrels per day every month.
This means that starting from next month, the OPEC+ arrangement will mandate 23 countries involved in the deal to reduce their level of production to 7.2 million barrels per day in contrast to the current 7.7 million barrels per day.
“In light of the current oil market fundamentals and the outlook for 2021, the meeting agreed to reconfirm the existing commitment under the DoC (Declaration of Cooperation) decision from April 12, 2020, then amended in June and September 2020, to gradually return 2mb/d, given consideration to market conditions,” OPEC said after the last ministerial meeting last Thursday.
“Beginning in January 2021, DoC participating countries decided to voluntary adjust production by 0.5mb/d from 7.7mb/d to 7.2mb/d,” the statement had said, adding that, “Furthermore, DoC participating counties agreed to hold monthly OPEC and non-OPEC ministerial meetings starting January 2021 to assess market conditions and decide on further production adjustments for the following month, with further monthly adjustments being no more than 0.5mb/d.”
The extension of the production cut compact by the OPEC+ arrangement comprising of Russia and allies comes at a time of the coronavirus pandemic has impacted global energy demand. However, with the announcement of several vaccines being successful, there has been a bounce in international crude oil prices.
Meanwhile, it was added that a third source said the meeting date would be confirmed by the next gathering on December 17 of the OPEC+ panel, the Joint Ministerial Monitoring Committee (JMMC).
