The meeting of the OPEC+ Ministerial Monitoring Committee on the parameters of oil production by the alliance for March began in the format of a videoconference, Report informs.
Following the discussion, a recommendation is expected to be set on the future of the deal amid a growing shortage of supply in the oil market. The recommendation will further be discussed by the entire alliance at a general meeting.
However, no surprises from OPEC+ are expected. Market participants believe that the alliance will approve the decision to continue increasing production in March by 400,000 barrels per day, according to the current plan. At the same time, in fact, OPEC+ is increasing production less, since a number of countries are experiencing difficulties with this due to underinvestment in the industry in recent years.
The OPEC+ alliance, due to the fall in oil demand caused by the coronavirus pandemic, has reduced its production by 9.7 million barrels per day since May 2020. As the situation stabilized, the deal was adjusted. Since August 2021, the alliance has been increasing production by 400,000 barrels per day every month, hoping to gradually withdraw from its commitments to limit production by the end of September 2022. As of February, it is 3.32 million barrels per day.