OPEC+ nations’ energy ministers are planning to rebound crude oil supply which has been staggering due to low demand because of the resurgence of COVID-19 pandemic, media reports said. It is reported that OPEC nations including other countries that produce crude oil are scrambling for profits.
The Organisation of Petroleum Exporting Countries (OPEC) and International Energy Agency (IEA) have said that the crude oil demand has been low for the past couple of days. Moreover, IEA said that the slump in the crude oil demand is due to teleworking and weak air travel, in addition to fresh lockdowns.
It is reported that Brent crude recorded a loss of 10 percent in the past two weeks, however, its per barrel price remained afloat at $40. Energy leaders from OPEC nations are planning to take measures to prevent a possible excess on oil supply this autumn or find other ways to rebalance oil supply.
The crude oil prices have been surging since the outbreak of the pandemic before the current OPEC regime took effect.
Oil companies were shocked by the UAE’s results as it failed to meet OPEC+ targets by a wide margin. However, the UAE has remained stringent towards the policy. According to the government of UAE, over compliance with the cuts has been unprecedented and the lapse is temporary because of high domestic seasonal demand.
The OPEC and OPEC+ nations are taking the issue seriously as crude oil prices are surging every day.