OPEC+ meeting to decide production levels

Members of the OPEC group of oil producers and their partners will meet via videoconference on Monday to decide on production levels for February, hoping to turn the corner on a difficult year.

The OPEC+ ministerial meeting comes after oil consumption tanked in 2020 due to the COVID-19 pandemic and a price war between Saudi Arabia and Russia.

Despite a pick up in prices towards the end of last year, the market levels for black gold remain uncertain.

After their last summit, from November 30-December 3, the OPEC+ members agreed to increase production by half a million barrels per day in January.

Also at that meeting the 13 members of the OPEC cartel, led by Saudi Arabia, and their six allies, led by Russia, agreed to meet at the beginning of each month in order to decide on any adjustments to production volumes for the following month.

Russia and Saudi Arabia are respectively the second and third biggest oil producers in the world after the United States.

The decision illustrates OPEC's desire to maintain a strong influence on the oil market and the gravity of the situation for crude producers last year.

Last month OPEC predicted a slight rebound in the market while noting continued uncertainties, particularly in the transport sector. Despite the heft of the OPEC+ countries, countries outside the system have a major impact on the oil market; principally the United States which is still producing 11 million barrels of crude per day. Even within its ranks, OPEC will have to pay attention to developments in the three members which have been granted exemptions from quotas -- Libya, Iran and Venezuela.