LONDON: The OPEC+ grouping of oil producers will hold its third ministerial summit of the year via videoconference tomorrow to discuss output cuts in the face of fresh price volatility. “The expectation is that the group will hold production steady also in May given current physical oil market weakness,” according to Bjarne Schieldrop, analyst at SEB. Under its current agreement the OPEC+ group is enforcing a drastic output cut, meaning seven million barrels that could be shipped to markets every day are being left in the ground. The aim has been to avoid oversupplying a market suffering from a collapse in demand due to the coronavirus pandemic. To help smaller producers, Saudi Arabia agreed to reduce its own output by an extra million barrels per day (bpd) in February, March and April.

Source: Libya Today March 30, 2021 02:03 UTC