Kovid-19 may cause a surplus of oil from the second wave. The Express Tribune
OPEC and its allies fear a long second wave of the Kovid-19 pandemic and a dismal outlook in Libya’s production compared to a month earlier, according to a confidential document seen by Reuters, to the oil market next year May push into surplus. A panel of executives from the OPEC + producers, called the Joint Technical Committee, considered this worst situation during a virtual monthly meeting on Thursday. In September, the panel did not see a surplus under any scenario that is considered. Such surpluses could jeopardize the plans of OPEC, Russia and allies, known as OPEC +, to cut record production by putting 2 million bpd of oil into the market in 2021 this year. The Organization of Petroleum Exporting Countries (OPEC) has not done so. So far indicated any plans to boost supply. According to the document used at the panel’s monthly meeting in October, “the first signs of economic recovery in some parts of the world are recovering from fragile conditions and growing doubts about the pace of recovery.”
Published in The Express Tribune, 18 OctoberTh, 2020.