OPEC + Countries Admit Decline In The Oil Market Due To The Quarantine
The monthly meeting of the ministers of the OPEC + countries was held on October, 19. The main issues of the meeting that took place online was the situation on the oil market, the second wave of the COVID-19 coronavirus pandemic, and the implementation of the largest production cut production.
The first signs of global economic recovery were offset by the increased number of coronavirus cases in oil-consuming countries. By winter, some regions of the world may continue quarantine measures again in whole or in part that puts oil demand at great risk. The market conditions remain volatile and the uncertainty in the oil market prevails.
The OPEC + countries agreed to continue to implement the agreement on production cuts. At the same time, according to Bloomberg, the meeting did not discuss changes to further reduce oil production. Saudi Arabia offered to assess the possibility of increasing oil production by OPEC + countries in early 2020, but the opinions of the participants were divided and there is no consensus on this issue due to uncertainty regarding oil demand in 2021.