OPEC+ is optimistic about the prospects of crude oil demand and maintains its production increase plan

Original source: Economic Information Daily

According to Agence France-Presse, on April 27, local time, the Organization of the Petroleum Exporting Countries (OPEC) announced that despite the current raging new crown pneumonia epidemic in India, global oil demand has gradually recovered from the pandemic, so it has decided to promote a gradual recovery.

OPEC said in a statement issued on the 27th that the ministerial meeting of OPEC and non-OPEC production reduction countries decided to continue the implementation of the plan that was formulated in early April to gradually reduce the scale of production reductions from May to July.

According to sources, the alliance abandoned its plan to hold a ministerial meeting on the 28th and held a meeting one day in advance to announce the relevant decision, which sent a more positive signal to the market.

Novak said the situation in the oil market is positive and oil demand is recovering, although the rapid spread of the new crown pneumonia epidemic in India and Latin America is worrying.

According to the report, despite repeated outbreaks in many countries, the market remains generally positive on the prospects for the recovery of the global economy and oil demand.

Analysis believes that India, as the world's third largest oil consumer and one of the main importing countries, its out-of-control epidemic has indeed put significant pressure on the oil market.

According to previous analysis by UBS Petroleum Analyst Giovanni Stunovo, thanks to the rapid vaccination of vaccines and the reduction of travel restrictions, it is estimated that by the second half of this year, global daily oil demand will rise from the current 94 million barrels.