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Oil
has recovered towards $80 a barrel for Brent crude after falling
to near $70 on March 20, as fears ease about a global banking
crisis and as a halt in exports from Iraq's Kurdistan region
curbs supplies.
OPEC+, which comprises the Organization of the Petroleum
Exporting Countries and allies led by Russia, is due to hold a
virtual meeting of its ministerial monitoring panel, which
includes Russia and Saudi Arabia, on Monday.
"It is hard to expect any new development," one of the delegates
said of Monday's talks. Another said the Kurdistan curbs and
recent price drops were not sufficiently important to affect the
overall OPEC+ policy path for 2023.
Three other OPEC+ delegates also said any policy changes were
unlikely on Monday. After those talks, the next full OPEC+
meeting is not until June.
Falling oil prices are a problem for most OPEC+ members because
their economies rely heavily on oil revenue.
Even so, OPEC+ delegates did not raise any suggestion of further
action to support the market after the recent price drop and
predicted prices would stabilise - which they have since shown
signs of doing.
Last November, OPEC+ reduced its output target by 2 million
barrels per day - the largest cut since the early days of the
COVID-19 pandemic in 2020. The same reduction applies for the
whole of 2023.
Saudi Arabia's energy minister has said OPEC+ will stick to the
reduced target until the end of the year.
(Editing by Sharon Singleton)
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