On Tuesday, the United Arab Emirates (UAE)’s Energy Minister Suhail al-Mazrouei said that OPEC+ will proceed with its plan to ease oil production cuts from January 2020.
“It will be reduced again at the end of this year as we walk to 2021,” the minister stated. “We believe that this is the calculated volume to cater for the demand coming back.”
The Organization of the Petroleum Exporting Countries and its non-member oil production allies are scheduled to ease their output cuts by 2 million bpd in January.
The grouping has been slashing its production since January 2017 in an effort to balance the oil market, support prices, and decrease inventories. At the moment, it is cutting output by 7.7 million bpd, down from 9.7 million bpd.
Looking ahead, Mazrouei is more optimistic about oil demand recovery as there have been signals following the lifting of coronavirus-related restrictions in many countries when even China has already gained back almost 90% of its pre-pandemic demand levels.
