LONDON – OPEC+ maintained its oil output policy at a meeting on Wednesday as the price of crude hit its highest in almost a year, a sign that deep supply cuts are draining inventories despite an uncertain outlook for demand recovery.

OPEC+ maintains oil policy amid price rally- oil and gas 360

Source: Reuters

A Joint Ministerial Monitoring Committee of OPEC+ met virtually on Wednesday, pronouncing itself “optimistic for (a) year of recovery in 2021,” a draft statement seen by Reuters said.

(Graphic for World Oil Demand and Supply: )

Reuters Graphic

Oil has rallied from historic lows hit last year as the pandemic hit demand, thanks to record output cuts by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+.

The OPEC+ panel made no mention of changing its oil policy, which calls for most members to hold supply steady in February and top exporter Saudi Arabia to cut output voluntarily by 1 million barrels per day this month and next.

(Graphic for Oil Market Balance – OPEC+ base case scenario: )

Reuters Graphic

(Graphic for Oil Market Balance, OPEC+ Alternative Scenario Oil Market Balance, OPEC+ Alternative Scenario: )

Reuters Graphic

On Wednesday, benchmark Brent crude hit $58.51 a barrel, the highest since late February 2020.[O/R]

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