With oil prices at 13-month highs, the OPEC+ producers’ meeting on March 4 is expected to discuss a modest easing of supply curbs from April.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, cut output by 9.7 million barrels per day last year as the pandemic ravaged demand. As of February, it is still withholding 7.125 million bpd, about 7% of world demand.
OPEC+ sources reckon a 500,000 bpd output increase looks possible without causing an inventory build-up, as economies recover.
Russia is keen to raise supply. Saudi Arabia’s voluntary 1 million bpd cut also expires in March, and that supply may return from April.
Some OPEC+ voices argue against an output increase, citing possible setbacks in the pandemic battle. The ministers will consider the latest market data before making their decision.