OPEC+ to meet to discuss planned oil output
Delegates of the twenty-three OPEC+ member states will today gather in Vienna amidst an energy crisis and rising gasoline prices worldwide.
In today’s meeting, representatives of the member states will discuss the implementation of oil production for the coming months. Despite the rising demand for crude oil, the organization’s members are largely divided on the regulation of oil production output.
As the world recovers from the effects of the COVID-19 pandemic and economic growth stabilizes, the global demand for crude oil will likely spike. While OPEC+ will likely increase oil production in the short-term—following to a period of stalling during the pandemic—it will refrain from maintaining such high production levels sue to future energy market uncertainty. Member states such as Russia are wary that the pandemic might resurface to once again suppress the global demand for oil.
Another factor that will withhold OPEC+ from taking the risk of overproducing is that more nations will likely seek to reduce their greenhouse gas emissions and become less reliant on fossil fuel consumption in favor of renewable energy. This development will significantly reduce the demand for petroleum during the long-term and specifically impact member-states with economy heavily reliant on oil exportation.
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