OPEC+ maintained its plan to increase production in July, and Saudi Arabia's energy minister expressed optimism about the global recovery.
According to delegates, after increasing production in May and June, OPEC+ will press ahead with its plan to increase production by 841000 barrels a day in July. As supply tightens in the market and there is likely to be a gap between supply and demand later this year, OPEC+ will face more difficult choices.
"there are clear signs of improvement on the demand side," Saudi Energy Minister Abdulaziz Ben Salman said at the start of the meeting. Russian Energy Minister Novak talked about "gradual economic recovery."
It took OPEC+ more than a year to get oil prices off record lows and only cautiously increased supply. Now that things are changing, oil prices above $71 are fuelling inflation fears, and if OPEC does not increase production, the market could become too tight, undermining the global recovery.
But OPEC+ remains cautious. Prince Abdulaziz expressed similar concerns to other delegates, saying there were still "dark clouds" in the future.
The return of Iranian crude oil to the international market is one of the factors influencing the decision-making of OPEC+. Another is the influence of mutant strains. Although there is a huge supply gap in the market that needs to be filled in the second half of the year, based on these two considerations, some oil-producing countries may advocate a pause before further production.
“新冠病毒是一个持久且不可预测的敌人，病毒变种仍然是一个威胁，” OPEC秘书长Mohammad Barkindo 表示。
"novel coronavirus is a lasting and unpredictable enemy, and the virus mutation is still a threat," said Mohammad Barkindo, secretary-general of the OPEC.
According to the agreement reached a year ago, OPEC+ plans to keep production unchanged after July until April 2022. While the deal can be renegotiated (given the continued rebound in demand, there is pressure), it at least gives OPEC+ an alternative.
According to two delegates, issues after July were not discussed at Tuesday's meeting.