Ahead of OPEC+ meeting, Saudi Arabia and Russia once again differ on oil agreement as Moscow is seemingly to favor an increase in output amid global improving demand, while Riyadh urges oil producer allies to be “extremely cautious,” despite prices rebounding to a one-year high.
According to Bloomberg, Saudis has yearned that it would prefer that the group broadly holds output steady. Moscow, on the other hand, is indicating that it still wants to proceed with a supply increase.
At present, OPEC members and its allies are still withholding 7 million barrels a day from the market, representing about 7% of global supply.
OPECT+ set to gather on March 4, to discuss further about petroleum supply, however, analysts expected the meeting to deliver two crucial decisions; 1) the pact agrees to restore its production by 500,000 barrels a day and 2) Saudis will voluntary cuts it output by additional 1 million barrels a day in February and March to help clear surplus inventories even more quickly, reported Bloomberg.