Investors await OPEC+ decision on production cuts
Today OPEC+ will hold a meeting at which it will consider the possibility of easing restrictions on oil production. Participants will determine whether it is possible to increase it by 500 thousand bpd under current conditions, when a new mutation of the coronavirus has been detected in the UK and a number of other European countries. Perhaps given the situation, some countries will find it acceptable to wait with the easing. In January, according to the current agreement in the alliance, the volume of production reduction is 7.2 million bpd. The agreement, which was struck last May at 9.7m b/d, has been gradually relaxed since then. production cuts were gradually loosened after that. The Alliance has decided to define the level of reduction every month, to adequately respond to the state of the market. It was decided to keep the cut level at 500 bpd. On the other hand, it was decided to keep it at 500bpd without reducing the quota by more than this value. OPEC+ is planning to gradually reduce it to 2,000 bpd, but depending on the situation on the market, it's also possible to increase in the quota is possible, depending on market conditions.