OPEC+ to hold virtual ministerial meeting

The 15th ministerial meeting of the Organization of Petroleum Producing Countries and non-OPEC partners (OPEC+) will take place virtually today.

OPEC + members meet monthly to discuss current oil market developments and coordinate future policies to ensure a stable global oil market. The meetings have taken on a new urgency over the past year after the COVID-19 pandemic tanked the global market and caused travel worldwide to grind to a halt.

Expect oil production quota caps and supply restrictions to loosen, in keeping with trends from past meetings. As the global market begins to recover from the COVID-19 pandemic, increased travel and trade will create a corresponding expansion in oil demand. This will only increase throughout the year as the global vaccination effort gains steam; the oil market is projected to recover 60% of losses from 2020. However, recovery could be delayed due to new COVID-19 variants increasing infections and vaccine nationalism hampering global vaccine availability. Therefore, expect members to take a cautious approach, slowly increasing supply and production over the next few months before looking to a wider expansion once global recovery gains a more solid footing in the second half of 2021.