OPEC+ countries expect deficit on oil market

The balance on the crude oil market will be shifted towards the supply shortage even if OPEC+ countries restore oil production in April - June, the OPEC+ Joint Ministerial Monitoring Committee (JMMC) says in its conclusion after the February 3 meeting.

Two oil market development scenarios are taken as a basis. The global oil demand will grow by 5.6 mln barrels per day in 2021 against the level in 2020 in the first scenario, while the second one assumes slower recovery of the oil market. Nevertheless, both forecasts show the oil market will have a deficit in supplies, using accumulated inventory surplus, TASS reported.

"Both scenarios also assume OPEC-10 and non-OPEC participants will increase production as per the decisions of the 13th OPEC and non-OPEC Ministerial Meeting in the months of April, May and June, and thereafter to remain unchanged," the document says. Iran, Libya and Venezuela are assumed to produce at December 2020 levels in 2021, according to the document.