OPEC Kicks Off 2021
“A reminder that OPEC+ has switched to monthly (full) ministerial meetings in early 2021” - Javier Blas
Editor’s note: We’re a day early this week - OPEC+ is meeting later this afternoon. It looks to be light week for oil…
OPEC+ MEETS AGAIN.
Later today, OPEC+ is meeting in Vienna, where there is a (small) risk that they will choose to ease production cuts.
Saudi & others want to err on the side of caution
Russia wants to ease cuts (produce more)
Crude is up slightly, on the market expectation that cuts will be held.
As it currently stands, the cartel is holding back ~7MM BOPD to compensate for the decline in demand caused by COVID.
Regardless of what happens later today, expect that OPEC+ will be in Q1’s headlines.
The group now plans to meet monthly.
If cuts are held later today, we’ll revisit in ~4 weeks time -
Asian LNG prices are approaching the $20/mmbtu level
Chinese Oil Majors may be next to be delisted
Hope y’all enjoyed the holidays - we’ll be back on Tuesday the 12th -