Lagos — In a bid to turn around the difficulties of last year, the Organization of the Petroleum Exporting Countries, OPEC and its non-OPEC partners jointly known as OPEC+ will meet on Monday to decide on production levels.
The OPEC+ ministerial meeting scheduled on hold via videoconference will see the group decide on production volume adjustments for February.
Last year, the COVID-19 pandemic coupled with price rivalry between Saudi Arabia and Russia had plunged the market into uncertainties which in turn negatively affected demands, likewise revenues of oil-dependent countries.
Although prices which had crashed to an all-time low had recovered to over $50 per barrel in December, the market still faces uncertainties over OPEC+ next move in terms of output and how it would pan out on prices.
The group had after their November 30-December 3 meeting agreed to increase production by 500, 000 barrels per day in January, and to meet every month to decide on output adjustments for the following month.
Brent gained 64 percent to sell at $51.72, almost $52 per barrel after a previous close of $5139 per barrel.
Despite the cuts however, countries outside the agreement, especially the United States which produces 11 million barrels of crude per day still pose a great threat to OPEC+ achieving a totally balanced market, likewise boost in prices.
OPEC may also have to grapple with possible production increase from members exempted from the cuts- Libya, Iran and Venezuela, which analysts fear may plunge prices backwards.