However, the report added that - as the member states of "OPEC" and "the declaration of cooperation" showed - this was not a time of despair, but rather a catalyst for concerted efforts and the launch of a stronger future partnership, noting that the ministers discussed at the 180th meeting of "OPEC" last December. And the next 12th meeting of the "OPEC +" alliance, how can producers continue to act as a beacon for the industry, which has been greatly affected by the pandemic.
He stated that the movements of the producers were necessary to support the industry, contribute to reviving the market’s fortunes and enhance the fundamentals and expectations of the oil market for the current year 2021, stressing the commitment of the member states in declaring cooperation to decide to adjust oil supplies appropriate to the market’s needs, pointing out that at the beginning of the new year it was agreed to add 500 thousand barrels per day for the oil supply, and the level of reduction was amended from 7.7 million barrels per day to 7.2 million barrels per day.
The report pointed to the importance of producers' procedures to follow market developments, especially in light of the agreement of OPEC + member states to hold monthly ministerial meetings for OPEC and outside it, starting from January 2021, to assess market conditions and decide on production adjustments, and compensation was extended until the end of March 2021, indicating that Saudi Arabia has more efforts to enhance its leadership role in the market, and in supporting the OPEC + producer alliance.
He indicated that the first monthly meeting of the ministers of the "OPEC +" producing countries discussed in detail the events of 2020 and the terrible impact of the Corona epidemic on the global economy and markets, pointing to the wide and surprising positive impact of Saudi Arabia's decision to make an additional unilateral adjustment by reducing production by one million barrels per day on Over the next two months of February and March.
The report pointed to Russia's appreciation of the Saudi action in reducing production, pointing to the statement by Alexander Novak, Deputy Prime Minister of Russia that the voluntary adjustment of Saudi production is a wonderful gift for the new year and supports the entire industry and is a major contribution to accelerating the pace of withdrawal of stocks in a more consistent manner, which will help stabilize the market Faster.
On the other hand, concerning prices at the end of last week, US crude prices slightly decreased at settlement after trading within a narrow range on Friday, as investors are concerned about the continuing global pandemic and the slow distribution of vaccines.
Brent crude contracts, the most active in the world, closed lower, due to concerns about the distribution of vaccines and the effectiveness of one of them.
Brent crude futures for March delivery were settled 36 cents, or 0.6 percent, to $ 55.88 a barrel, and the Brent March delivery contract expired, and the most active April contract was settled on a decline. Six cents at $ 55.04 a barrel.
US West Texas Intermediate crude futures fell 14 cents, or 0.3 percent, to $ 52.20 a barrel, and a Reuters poll concluded that oil prices are expected to hover around their current levels for a large period of 2021 before the recovery gains momentum with the trend. To the end of the year.
Saudi Arabia is scheduled to cut production by one million barrels per day in February (March), and improvement in January (January) the compliance of the Organization of the Petroleum Exporting Countries and its allies, within the framework of the "OPEC +" group, to production restrictions.