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OPEC + oil production control committee meets today to recommend on supplies

Today, Wednesday, a joint ministerial committee oversees production for OPEC + member states to give a recommendation on production policy, starting in August.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC +, have cut production by 9.7 million barrels per day since May, or 10% of global supplies, after the virus has undermined a third of global demand.

After July, the cuts are slated to shrink to 7.7 million barrels per day, through December. A committee of ministers of major producing countries, in what is known as the Joint Ministerial Monitoring Committee, meets today after 1200 GMT, to determine the next level of cuts.

The meeting comes amid widespread market expectations that the group will reduce supply constraints, as the global economy slowly recovers from the Corona virus pandemic.

Five OPEC + sources said, according to Reuters, that there were no recommendations to extend the record cuts in August. OPEC Secretary-General Mohamed Barkindo stated this week that the oil market is close to achieving a balance.

And on Tuesday, OPEC said it expects global demand to recover by seven million barrels per day in 2021, after falling by nine million, this year.

Oil prices rebounded to around $ 43 a barrel, from a 21-year low, at as low as $ 16 a barrel, in April.

Actual production increases from August may be less than two million barrels per day, given that Iraq and Nigeria pledged to offset the higher production levels in May and June, with reductions greater than their pledge.

Saudi oil exports will remain in August, at the same level in July, according to sources in the sector told Reuters, due to the consumption of additional production locally.