OPEC + opens for more oil cuts – E24

In a joint statement after the cartel’s monthly meeting on Tuesday, the members stated:

– All participating countries must be vigilant, proactive and ready to act according to market demands.

Hours earlier, Saudi Arabia’s energy minister said countries should be prepared to cut production more than was set out in an April deal, when it was agreed to cut production to 5.8 million barrels a day in January.

– We must be prepared to adjust the terms of our agreement if necessary. Flexibility and proactivity must continue to guide our negotiations today and in the future, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said in a speech to the cartel.

OPEC + is made up of the OPEC countries and allied states like Russia. The cartel will try to avoid a price drop similar to what was seen in March, when the corona pandemic and closures around the world caused a drop in demand for oil.

Despite the good news on coronary vaccines in recent weeks, OPEC + expects demand not to pick up again for a while, partly due to fresh closures across much of the world.