• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 5 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 12 hours Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 1 day Did China cherry-pick the factors that affected the economic slow-down?
  • 1 day "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 7 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 2 hours Are you aware of Oil Price short videos on our energy topics?
  • 4 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 10 hours NordStream2
  • 4 days Nord Stream - US/German consultations
  • 410 days Class Act: Bet You've Never Seen A President Do This.
  • 3 days Forecasts for Natural Gas
  • 4 days Australia sues Neoen for lack of power from its Tesla battery
A Successful Energy Transition Will Need Oil Demand Destruction

A Successful Energy Transition Will Need Oil Demand Destruction

While governments and international institutions…

Permian Oil Output Close To Pre-Pandemic Level

Permian Oil Output Close To Pre-Pandemic Level

Crude oil production in the…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

OPEC President: OPEC+ Shouldn’t Hurry To Ease Oil Output Cuts

The OPEC+ group of producers must continue to calibrate the easing of its collective oil production cuts to the still fragile global oil demand in the pandemic, Abdelmajid Attar, the Energy Minister of Algeria, which holds OPEC’s rotating presidency for 2020, told Bloomberg in an interview.

“Despite the positive signs and a significant improvement in oil prices, I think we should be very cautious,” Attar told Bloomberg.

Earlier this month, the OPEC+ group managed to avoid a no-deal outcome at its meetings, which went on for days amid disagreements over how the OPEC cartel and its Russia-led non-OPEC partners would act next year with COVID-19 still depressing fuel demand in the world.

The original plan for a 2-million-bpd increase of OPEC+ production as of January was watered down to a 500,000-bpd rise for January in a compromise agreement, largely seen as a positive outcome that avoided a break-up of the OPEC+ pact or even of OPEC. 

The total production cut for January will thus be 7.2 million bpd, compared to the current 7.7 million bpd collective cut, while the ministers decided to hold monthly meetings to decide the oil production policy for the following month.

The producers in the pact are set to increase production by no more than 500,000 bpd each month through April 2021, OPEC said at the end of its meeting for the year.  

The next meetings of the Joint Technical Committee (JTC) and the Joint Ministerial Monitoring Committee (JMMC), originally scheduled for this week, have been pushed to early January, ahead of the next ministerial meeting on January 4, OPEC said in a short statement on Monday, without giving any details about the postponement.

Easing the cuts by a total 2 million bpd between January and April is not a goal in itself, as the OPEC+ group needs to ensure drawing down of inventories, the Algerian energy minister told Bloomberg.

OPEC itself is cautious about oil demand early next year, and it cut on Monday, again, its oil demand projections for 2021, as mass vaccinations are likely to take months before helping an oil demand rebound.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on December 15 2020 said:
    The Energy Minister of Algeria, which holds OPEC’s rotating presidency for 2020 is absolutely right in calling on OPEC+ to calibrate the easing of production cuts to the global oil demand.

    OPEC+ should have extended its current production cuts of 7.7 million barrels a day (mbd) for three more months until the end of March 2021 rather than returning 500,000 barrels a day (b/d) to the market at the end of January to be followed by a similar volume every month until April. However, the alternative would have been no agreement adversely impacting OPEC+ standing and also the oil market.

    Still, OPEC+ could easily withdraw the 500,000 b/d from the market if the global oil demand weakens for one reason or another.

    However, I project a surge of both global oil demand and prices triggered by the start of vaccination in many parts of the world and the promise of a wider opening of the global economy.

    Another promising factor is that global economy is projected to grow in 2021 by 5.4% compared with 3.3% in 2019 led by emerging markets particularly China and India. This will stimulate the Asian crude oil market which is the biggest in the world.

    The global economy could also get a further impetus with a probable end to the trade war between the US and China under a President-elect Biden’s administration and a possible de-escalation of tension between Iran and the United States.

    Based on the above, Brent crude price could be expected to hit $60 in the first quarter of 2021 and $70-$80 in the third quarter. This trajectory will give an average price of $65-$70 in 2021 and possibly test $100 by 2024.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News