Financial Watch: Major Oil Producing Countries Gradually Increase Production to Cope with Uncertain Demand

Original title: Financial Observation: Major Oil Producing Countries Gradually Increase Production to Cope with Uncertain Demand

　　OPEC(OPEC) and non-OPEC oil producing countries ministerial levelmeetingTaken by video on the 3rd, the meeting decided to increase production by an average of 500,000 barrels per day starting in January next year, and then negotiated monthly adjustments.

Analysts said that gradually increasing production can guarantee the originally fragile energymarketContinue to recover, but considering that the new corona epidemic still existsUncertainty, What affects crude oildemand，short termInternationalOil priceIt will still be under pressure.

Earlier this year, due to the impact of the epidemic, the international oil market remained sluggish and the revenues of oil-producing countries continued to decline. Desperate, the oil-producing countries reached an agreement to cut production.

The production cuts will help maintain international oil prices, but it requires coordination among oil-producing countries. Under the agreement, OPEC and non-OPEC oil-producing countries will cut production by an average of 9.7 million barrels per day from May to July this year, and cut production by an average of 7.7 million barrels per day from August to the end of this year.

Recently, when international crudepriceWhen there was a rebound, some oil-producing countries began to question the previous policy of strictly controlling crude oil production, hoping to expand crude oil production to increase revenues. According to local media reports in Saudi Arabia, many oil producing countries are willing to scale up oil production in 2021 to some extent.

However, this opinion is not a consensus of many parties. Some oil-producing countries believe that as the epidemic recovers in many countries, the international crude oil market still faces uncertainty, demand remains fragile, and the time has not yet come to increase large-scale production. .

Some analysts believe that the consequences of inappropriate measures to increase production may be counterproductive. If both OPEC and non-OPEC oil producing countries increase their daily production significantly, it can lead to a drop in international oil prices in 2021, causing huge losses.

Aksithe companyStephen Innes, chief global market strategist, said that in passenger jets, trains and automobiles,trafficThe tools work time and time again on a global scale, and countries are beginning toEffective controlInternational oil prices will remain at their current level before the epidemic promotes a substantial economic recovery.

According to the agreement reached at the last ministerial meeting, starting in January next year, OPEC and non-OPEC oil-producing countries will hold a monthly ministerial meeting to assess market conditions and decide the scale of production adjustments for next month, no monthly adjustments. More than 500,000 barrels per day.

　　ConsultancyKalmar energyExecutive DirectorRobin Mills said that the monthly plan to increase production moderately is more pragmatic, which will not lead to blind market movements, and can be gradually adjusted according to the objective situation of epidemic prevention and control.

(Source: Xinhua News Agency)

(Responsible editor: DF522)