The Organization of Petroleum Exporting Countries (Opec) downgraded its outlook for the global oil market a few days before ministers meet, amid faltering demand and signs of a recovery in supply from US shale drillers.
The figures raise questions about the group’s decision to ease production cuts last month. The Opec added 760,000 barrels a day to global markets in August, just as its analysts were revising down demand for its crude by more than 1 million barrels a day.
Opec and its allies will hold an online monitoring meeting on Thursday to assess whether the vast production curbs they’ve been making are still sufficient to stave off an oil glut as the resurgence of coronavirus batters the world economy.
Oil prices slipped further below $40 a barrel in London on Monday, close to their lowest in more than two months, as companies from BP to Trafigura Group made ominous predictions about consumption.
Opec+, the 23-nation alliance spanning cartel nations like Saudi Arabia and non-members such as Russia, had agreed to taper some of the supply cutbacks made during the depths of the pandemic amid expectations that economic activity was recovering.
Iran says it supports Opec as far its interests are protected
Iran supports Opec as far as the group protects Iranian interests alongside other members, Iran's OPEC governor Amir Hossein Zamaninia was quoted as saying on Monday by the oil ministry's news agency SHANA.