The meeting of OPEC + countries is scheduled to take place on Thursday.
A meeting is going to be held this week between crude oil producing countries. In view of global demand, this time the meeting is expected to increase the production of crude. Increasing the production of crude oil will also be an indicator that recovery is now being seen in the global economy.
Actually, Saudi Arabia’s attitude towards increasing production still seems cautious, while Russia is in the mood to increase production. In the midst of all this, on Thursday, the production of crude oil can be increased to 1.5 million barrels per day.
Last year, oil producers suffered losses
If there is agreement to increase production among the oil producing countries in the meeting, then it will also become clear that the global economy is now recovering from Corona. The past one year has been challenging for crude producing countries. He had to take the decision of even the biggest output cuts in history, as worldwide demand for fuel was reduced to a record level after the global lockdown. But, these countries have also benefited in the last few months. Especially, when the price of crude oil has once again managed to reach $ 60 per barrel.Also read: Government oil companies release latest prices of petrol diesel, know the rate of 1 liter
The situation is better for oil producers now
In a report quoted by OPEC Secretary General Mohammed Barkindo, Bloomberg wrote, “The global economic recovery and the prospects in the oil market show that the situation is getting better now.” He said that the way the market became such a big problem amid uncertainties last year, it is now over.
These two issues will be discussed in the meeting on Thursday
On Tuesday also, the price of crude oil has been seen softening for the fourth consecutive day. On Tuesday, the price of Brent crude has come down by 1.6 per cent to $ 62.70 per barrel. However, it is still about 20 per cent more than the luggage period of last year. In the meeting to be held this week, the group of OPEC Plus countries is going to discuss two things prominently. The first of these is whether in April these countries together will increase production to 5 lakh barrels per day or not. Whereas, the second issue will also be how Saudi Arabia will reduce the additional supply cuts. Will it be phased sleeping? For February and March, Saudi Arabia had decided to reduce the additional supply of 1 million barrels per day.
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Historical cuts had to be made last year
Whatever decision Saudi Arabia makes now, one thing is certain. The biggest supply boost is going to be found in the global market of crude oil since August last year. In April last year, oil producing countries had to cut production by up to 97 lakh barrels per day. Even if these countries increase production up to 2.4 million barrels per day between February and June, many countries will benefit globally and will be able to compensate for the losses incurred last year.