The Mindset of the World’s Oil JuggernautMajor global oil players led by oil juggernaut, Saudi Arabia had lately been pushing other oil-producing countries in increasing their production of crude oil from next month
In a report credited to private sources, this move was triggered on signs that the demand for energy is returning to normal levels following the easing of COVID-19 related lockdowns around the world.
Important oil stakeholders among Organization of the Petroleum Exporting Countries and other global energy players that include Russia are scheduled to meet via webinar on Wednesday in discussing the group’s present and future production of crude oil.
Months ago the Saudis, played a leading role that saw OPEC reduce its crude production level by 9.7 million barrels a day, as COVID-19 pandemic weakened the demand for oil.
Now the oil juggernaut (Saudi Arabia) and most major oil players including Russia intend to loosen their limits placed on crude oil production,
According to private sources, the Saudis propose, that OPEC+, relax its limits by 2 million barrels a day to 7.7 million barrels a day.
This could change the positive macros surrounding crude in the short term or obstruct energy demand to return to pre-COVID-19 levels as the resurgence of COVID-19, appears to have tightened crude oil traders hope in crude oil finishing the year above $60 per barrel,
On compliance level the Saudis reduced its crude oil production by a million barrels per day, far more than it should, thereby helping OPEC in reducing crude oil production to its lowest point in about three decades thus helping the major macros surrounding crude oil prices, amid growing concerns that COVID-19 is having a comeback
This month, report from the IEA revealed a 108% compliance result against 89% a month earlier recorded.