(PTI)
Leaders of the OPEC cartel are meeting virtually to decide, once again, how much oil their members should produce as lockdowns related to the coronavirus continue to stifle demand for crude. They’re expected to extend production cuts well into the new year, in an effort to boost volatile oil prices.
The OPEC nations, led by Saudi Arabia, will be meeting Monday.The group has to reach agreement among its member countries and the additional members in the group known as OPEC Plus, which is led by Russia. Members of the OPEC Plus group will meet Tuesday.
It’s tricky to predict how much oil the world will need with coronavirus cases surging around the world.The industry has seen some hopeful signs, with several drug companies reporting promising results from coronavirus vaccine trials. But some experts warn that oil demand may never fully recover, because the coronavirus travel restrictions, combined with the steps governments and corporations are taking to reduce use of fossil fuels to combat global warming, may have put a permanent dent in oil demand.
Plus, the coalition of oil-producing countries has been restricting its output for months, straining its members. The longer these agreements go on, the harder it is to hold it together, said Jacques Rousseau, managing director at Clearview Energy Partners.
