OPEC plans to ease the restriction imposed to prevent the oil glut. Some cautious signs of growing demand are seen on the market and the oil price is stable around $40. Meanwhile many OPEC countries depend on the volumes to meet their budgetary needs. These countries are pushing for the increasing of quotas.
OPEC+, as the group of countries is called, will hold a video conference on Wednesday. OPEC and allies such as Russia are having an online meeting this week and may announce plans to phase out their production restrictions.
Saudi Arabia is reportedly planning to ramp up production from August. Large Russian oil companies are also said to have plans to produce more oil.
Earlier this year, oil prices were still under severe pressure from the corona crisis as demand for oil was much lower, including from the aviation sector. Oil prices have since picked up again due to production restrictions by OPEC, Russia and other producers, and demand is picking up slightly.
The price of a barrel of American oil fell 0.7 percent to $40.26 on Monday morning. Norwegian Brent oil fell 0.6 percent to $42.98.