Reuters: OPEC+ Expected to Adhere to The Supply Plan, Given That Iranian Production Has Not Yet Returned

Three OPEC sources told Reuters that OPEC+ is likely to stick to the current pace of gradual easing of oil supply restrictions at Tuesday’s meeting, as producers weigh their expectations of a demand recovery against a possible increase in Iran’s supply.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, in the group known as OPEC +, decided in April to return 2.1 million barrels per day of supplies to the market in the period from May to July, as it expected an increase in global demand despite the high number of infections with the Coronavirus. in India.

Since the adoption of this decision, oil prices have gone up and gained more than 30% since the beginning of the year. However, the possibility of increasing production from Iran, with progress in talks to revive its nuclear deal, has limited the upward trend. The price of Brent crude rose to more than $70 a barrel on Tuesday.

OPEC Secretary-General Mohammad Barkindo said he did not expect the increase in Iranian supply to cause problems.

OPEC+ sources said that the group’s experts confirmed earlier expectations for a big jump of 6 million barrels per day in oil demand in 2021 as the world recovers from the Covid-19 pandemic.

OPEC+ sources said they did not expect the group to make a decision on production policy beyond July because the outlook for Iranian supplies was unclear. Another meeting of OPEC is scheduled for 24 June.

OPEC+ cut production by a record 9.7 million barrels per day last year as demand collapsed. As of July, OPEC+ cutbacks will be reduced to 5.8 million barrels per day.